Kemira's Board has decided on further measures to raise performance levels in Kemira Agro Nitrogen (KAN) functions in continental Europe. The KAN business is being restructured to achieve more competitiveness, improved profitability and increased business value, in view of the intended sale of the nitrogen fertilizer business. The actions will improve Kemira Agro's result by approximately EUR 4 million this year.
Kemira Agro Nitrogen will develop the Kemistar-concept through deeper cooperation with customers and by adapting support functions to the new conditions. The discussions with personnel will commence within the next few days.
The Board further decided that the closed nitric acid plant located in Rozenburg, Holland, will be relocated to Kemira's Tertre site in Belgium. The relocation procedure is to begin forthwith, and it is estimated that the transfer will be complete by summer 2002. With the new nitric acid capacity coming on steam older capacity will correspondingly be closed due to environmental and cost efficiency considerations. The investment will not affect the fertilizer granulation capacity at the Tertre plant.
Kemira Agro has also reached an agreement on the sale of its holding in Kemira Pernis B.V. in Rotterdam, Holland to the Van Bentum company. The agreement covers the entire Pernis site, the real estate property, the port and equipment. Van Bentum plans to launch a business for the recycling of various materials on site.
The positive effect of these measures is estimated to be in excess of EUR 4 million in Kemira Agro's result for the current year. The necessary investments are EUR 12.5 million, with expected annual savings of some EUR 16 million. Cost benefits will be gained fully towards the end of the year 2002.