01 November 2013 10:57 [Source: ICIS news]
LONDON (ICIS)--Kemira has formed a joint venture with Wilmar International to produce alkyl ketene dimer (AKD) wax at two separate sites in China, the Finnish chemicals company said on Friday.
The 50-50 owned joint venture businesses will integrate the current facilities of Kemira in Yanzhou and the relevant Wilmar facilities in Lianyungang, Kemira said. Both locations are in the east of China.
AKD wax is used as a ‘sizing agent’ in the paper production process, which affects the water resistance of paper and board.
“The JV with Wilmar is an important step in the implementation of Kemira's paper strategy" said Petri Helsky, president of Kemira's Paper business segment.
The joint venture transaction, which is subject to certain conditions including merger clearances, is expected to close in the third quarter of 2014. No financial details were disclosed.
Singapore-based agribusiness group Wilmar is a leading producer of stearic acid, which is the key raw material for AKD production.
"The JV, which will be an expansion down the oleochemicals value chain for Wilmar, will capitalise on Wilmar's advantage in sourcing of raw materials as well as on cost efficiencies from its integrated manufacturing operations,” said Dave Cui Xinyu, head of Wilmar Oleochemicals, China.
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