Kemira and Rockwood to form leading TiO2 joint venture
Kemira Oyj and Rockwood Holdings Inc. have agreed to form a joint venture that includes both parties´ titanium dioxide businesses and the functional additives business owned by Rockwood. The transaction values Kemira's TiO2 business in excess of EUR 250 million and will result in a small capital gain for Kemira. In addition, the transaction will have a positive cash flow effect and reduce Kemira´s net debt by appr. EUR 120 million. The deal is subject to approval by the competition authorities and is expected to close during Q3 in 2008.
The new joint venture will include Rockwood´s titanium dioxide pigments and functional additives businesses, including its production facilities in Duisburg, Germany and Kemira´s titanium dioxide business, including Kemira´s titanium dioxide plant in Pori and Kemira´s technical research center specializing in TiO2 products in Oberhausen, Germany and its US subsidiary, Kemira Specialty, Inc. Kemira´s TiO2 business had a turnover of appr. EUR 230 million in 2007 and operative EBITDA of slightly less than 14 %.
The new specialty titanium dioxide company will be headquartered in Germany and had a pro forma turnover of appr. EUR 560 million in 2007. The new company will have a yearly production capacity of around 240 000 tons of titanium dioxide and it will employ around 1 700 employees. Rockwood will own 61% and Kemira 39% of the new joint venture.
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