AkzoNobel to build new pulp Chemical Island facility in Brazil


AkzoNobel will invest €80m ($105m) to build a new pulp Chemical Island facility in Imperatriz, Maranhao, Brazil.

The new facility will be operated by AkzoNobel's pulp and paper chemicals business arm Eka Chemicals, and will supply the Suzano Maranhao pulp mill on completion.

AkzoNobel Specialty Chemicals' executive committee member Rob Frohn said: "This 15-year agreement emphasises 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."

Through this investment, AkzoNobel expects to supply, store and handle all chemicals for the 1.5 million tonne per year (tpa) pulp mill.

AkzoNobel said the new mill is expected to commence operations in the last quarter of 2013.

"We are very proud to have been awarded this project; it underlines the value our Chemical Island concept brings to our customers," said Eka Chemicals' general manager Ruud Joosten.

"The future demand for pulp and paper in Latin America and China is forecast to increase substantially over the next decade and these investments ensure that we are part of that growth."

Ernesto Pousada, COO at Suzano Papel e Celulose, added: "Via this deal, we are ensuring our plant will use the latest and most sustainable chemicals available."

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

AkzoNobel is engaged in the paints, coatings and specialty chemicals business, and also supplies products, including Dulux, Sikkens, International and Eka brands, to various industries and consumers.

Eka Chemicals supplies bleaching chemicals, paper chemicals and systems to the pulp and paper industry, and certain special chemicals to the pharmaceuticals, water treatment, and electronics industries.

Image: AkzoNobel will build a new pulp Chemical Island facility in Brazil.