24 April 2003 18:21 [Source: ICIS news]
LONDON (CNI)--Finland's Kemira aims to acquire more water treatment chemical plants in Russia if its latest acquisition, a 70 000 tonne/year liquid aluminium sulphate unit in St Petersburg, is a commercial success.
Hannu Luhtala, Kemira Kemwater vice president, told CNI on Thursday that the company took full control of the plant on 17 April from NPF Pigment, the Russian open joint stock company with which it established a joint venture to run the unit over a year ago.
Kemira will also expand its aluminium sulphate production capacity at the plant to 120 000 tonne/year within 12 months and intends to build a 50 000 tonne/year ferrous sulphate line, with startup due by 2005.
Total value of the deal to acquire the plant and invest in expansion is about Euro10m ($10.9m).
If the St Petersburg venture is successful, Kemira would like to acquire about one plant a year, said Luhtala. The acquisitions could follow a similar pattern to this one with Kemira establishing a joint venture with a local company and then taking full control later.
Kemira would only be interested in buying plants with a turnover of at least Euro4-5m, he said.
Luhtala said the market for water treatment chemicals in Russia should grow by 10-15% a year.
The company is also hoping to market more water treatment products from its own range in Russia.
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