Kemira announce R&D investment in Brazil

In building on the plans reported in a recent blog, Kemira has announced that it will open a technological centre in Sao Paulo, Brazil. The new R&D centre is expected to start up in 2009. 

Kemira reported a turnover of EUR 100 mio in the region in 2007 - a 67% increase on the previous year - so the region is important for their business and justifies having one of the 5 strategically-placed technical centres.  As part of the justification for the location, Kemira stated that it expects the chemicals for pulp bleaching in Latin America to increase by 5.7% per annum from a USD 275 mio in 2007 to USD 385 mio in 2012 m - this of course depends on whose market data you use and when it was compiled.  Pulp is not the only growth area as South America also realises the potential in moving up the value chain and producing more paper and board.

This announcement is part of Kemira's plan to establish 5 significant global technical centres and consolidate its activities in the key regions, rather than have the 17 dispersed R&D sites they have today.

Nalco expand relationship and become Exclusive Distributor of Evonik Goldschmidt's Tissue Chemicals in Central and South America

Nalco Company and Evonik's Goldschmidt Industrial Specialties announced that they will expand their co-operation and Nalco will now also be the exclusive distributor of Evonik's tissue additives in Central and South America. In July 2006, Nalco became the exclusive distributor of Evonik's tissue products in Europe and an agency agreement between the companies covering the United States, Canada and Mexico was finalised in February 2007.

Evonik's range includes products marketed under the following brands: AROSURF PA, VARISOFT, Z-QUAT, REWOQUAT and TEGOPREN and are complemented by Nalco's strong range of process chemicals and their excellent service model at paper mills. This further strengthens Nalco's position in tissue chemicals and further challenges Hercules' leadership position in this market segment.

Dow Chemical increases acylic acid and acrylate prices

Dow Chemical has announced price increases for acrylic acid and acrylates:
butyl acrylate, 2-ethylhexyl acrylate, ethyl acrylate, methyl acrylate and glacial acrylic acid globally as follows: North America by $0.03/lb; Asia Pacific by $70/tonne; Middle East/Africa by $70/tonne; Latin America by $70/tonne and Europe by Euro 50/tonne.

Eka Chemicals (Akzo Nobel) invest in Brazil

On the 24th May, there was an announcement from Eka Chemicals to continue their investment in Brazil with an injection of EUR 50 million ........ they signed an agreement to supply, store and handle all chemicals for a greenfield pulp mill being built in Três Lagoas, Brazil.

The new mill—known as the Horizonte Project—will have an annual production capacity of 1,250,000 tons of pulp, and was recently transferred to Votorantim Celulose e Papel (VCP) as part of an asset exchange.

Eka Chemicals will establish a chemical island at the new site, mainly for the production of chlorine dioxide. In addition, Akzo Nobel’s pulp and paper chemicals business will also expand its existing site at Jundiaí (São Paulo) where a new production line will produce 30,000 tons of sodium chlorate a year, most of which will be destined for the same Três Lagoas mill. The total investment for Akzo Nobel amounts to around EUR 50 million.

It looks as though the competition for the pulp bleaching business in South America is hotting up between Kemira and Eka.