Dutch AkzoNobel to invest €80m to build new facility in Brazil

01 February 2012 08:19  [Source: ICIS news]

SINGAPORE (ICIS)--AkzoNobel is planning to invest €80m ($105m) to build a new “chemical island” facility in Brazil which will supply a pulp mill currently bring constructed at Imperatriz in Maranhao, the Dutch special chemicals firm said on Wednesday.

The investment will involve supplying, storing and handling all chemicals for a 1.5m tonne/year pulp mill which is expected to come on stream in the last quarter of 2013, AkzoNobel said in a statement.

The new facility will be operated by the AkzoNobel’s pulp and paper chemicals business, Eka Chemicals.

"This 15-year agreement emphasizes the importance of high growth markets for AkzoNobel and will help drive the company's medium-term strategy of doubling revenue in Brazil to €1.5bn," said Rob Frohn, AkzoNobel executive committee member responsible for specialty chemicals.

AkzoNobel currently runs chemical islands, as well as other production units, on several customer sites in Brazil.

It also operates bleaching and paper chemical plants in Jacarei, Rio de Janeiro, Tres Lagoas and Jundiaí.

The majority of AkzoNobel’s revenue in Brazil is generated from local demand.

($1 = €0.76)

By: Nurluqman Suratman

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