24 September 2004 10:19 [Source: ICIS news]
LONDON (CNI)--Finnish chemicals group Kemira said Friday it has bought Canadian paper chemicals company E.QU.IP as part of its ambitious expansion plans in North America.
The acquisition of Montreal, Quebec-based E.QU.IP, which was finalised yesterday, will boost Kemira's turnover in Canada by Can$13m ($10m/Euro8m).
Neither Kemira nor E.QU.IP would disclose the purchase price but CNI understands it was well under Can$13m.
Although E.QU.IP is a small business - it employs just under 50 people and has just one production unit - Kemira said the acquisition was important because it brings unique competence and technology to the group's approximately Euro250m turnover pulp and paper chemicals business in North America.
Juhani Lindholm, president of Kemira Pulp & Paper Chemicals, told CNI that E.QU.IP created excellent growth opportunities, especially in eastern Canada - a market he said was similar in size and structure to Nordic countries.
The acquisition, he continued, was part of Kemira's plans to double its turnover in Canada over the next two years and would contribute to the group's ambition to overtake Switzerland's Ciba as the world's largest supplier of pulp and paper chemicals.
Lindholm said, however, that the specialist knowledge and expertise in E.QU.IP was its main attraction to Kemira. This specialist knowledge would help Kemira assist its customers to meet the high technology challenges they are facing.
E.QU.IP's Montreal plant is primarily a blending and storage facility specialising in reagents and dispersing agents, said Lindholm. "There are no reactions," he added.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections