The State of Finland has sold a major part of its holdings in Kemira, the Finnish chemical industry group, to Dynea, from Sweden. The sale aims to create a new Nordic chemical group focused on specialty chemicals. It is planned that the new group will combine the businesses not only of Kemira and Dynea, but also of Sydsvenska Kemi AB, currently controlled by the Swedish capital investment company, Industri Kapital.

The new group's net sales are expected to reach about EUR 4.2 billion. It will be domiciled in Finland and headed by Tauno Pihlava, Kemira's CEO. The State of Finland will retain a 34 per cent holding.

Kemira is an international chemical industry group with growth areas in paper and pulp chemicals, water treatment chemicals, paints and coatings. Its other key product areas include specialty fertilisers and industrial chemicals. Kemira's net sales in 2000 totalled about EUR 2.5 billion. The group employs about 10,000 people and has production facilities in more than 30 countries.

Dynea is a world leader in the manufacturer of industrial adhesives. The group was created last autumn with the merger of Dyno, from Norway, and Neste Chemicals, from Finland. Dynea's net sales in 2000 totalled EUR 1.0 billion and the group employs about 3,000 people. Dynea has more than 50 production plants in over 25 countries world-wide. The international specialty chemicals group Sydsvenska Kemi AB has its roots in the Nordic countries and includes the former businesses of Perstorp and Oxo AB. Sydsvenska Kemi AB's net sales last year were EUR 850 million and its personnel numbered 3,000.

>> www.kemira.com
>> www.dynea.com