AkzoNobel invests €90m in growth strategy to supply world's largest pulp mill
AkzoNobel has signaled its strategic intent to accelerate growth by investing close to €90 million in a new facility being built in Brazil. The plant, operated by the company's Pulp and paper chemicals business, Eka Chemicals, will supply the world's largest pulp mill.
The agreement - with Eldorado Celulose e Papel - emphasizes the importance of high growth markets to AkzoNobel and will help drive the medium-term strategy of doubling revenue in Brazil to €1.5 billion. It also underlines the value the company attaches to securing long-terms partnerships with customers.
The investment - AkzoNobel's biggest ever in Latin America - is centered on further expanding Eka Chemicals' sustainability focused Chemical Island concept. It will involve supplying, storing and handling all chemicals for the 1.5 million tons per year green field mill, which is being constructed in the northern part of Três Lagoas City. The mill is expected to come on stream in September 2012.
"This 15-year agreement confirms our intention to accelerate growth and expand our activities in the world's high growth regions," said Rob Frohn, the AkzoNobel Board member responsible for Specialty Chemicals. "We are about to make one of the biggest investments in our history, which emphasizes both the importance of Latin America to our growth ambitions and our commitment to the pulp and paper industry."
Other news from the department business & finance
