Displaying items by tag: Kemira
Kemira's President and CEO Wolfgang Büchele have announced that he will resign from his current position as Kemira's President and CEO to become the CEO of Linde AG. Linde, a German gases and engineering company, had revenue of EUR 15,280 million and 61,965 employees in 2012. It has been agreed that Büchele will continue as Kemira's President and CEO until April 30, 2014.
Kemira Oyj's Chairman of the Board Jukka Viinanen: "While I regret the departure of Wolfgang, I respect his decision to take the position as the CEO of Linde. Wolfgang has brought Kemira extensive and broad industrial knowledge combined with international experience and network. During his period as the President and CEO, Wolfgang successfully started a significant structural change in Kemira to become a profitable water quality and quantity management focused company. I would like to take the opportunity to thank Wolfgang for the valuable work he did as a CEO. With its strong Management Board and experienced Board of Directors, Kemira will continue to implement the started change initiatives and focus to deliver on our strategy."
Kemira Board of Directors has already initiated the search for the new President and CEO.
Kemira has signed an agreement to acquire Soto Industries Inc, a privately owned company, headquartered in Vancouver, Canada. Soto is a specialty chemicals and services supplier to the pulp and paper industry.
Soto supplies a broad range of specialty chemicals including digester scale control, silicone and oil-based defoamers, and polymers used in green liquor clarification and effluent treatment for pulp and papermaking.
"This acquisition helps us accelerate our strategic plan and secures our position as a leading supplier to the pulp and paper industry in North America. It also supports Kemira's objective of achieving above-the-market growth in the mature markets. In addition to the strong strategic fit, the transaction is expected to result in synergies through raw material, logistics and fixed cost savings." says Billy Ford, Senior Vice President, Paper segment, North America.
The transaction does not have material impact on Kemira's financial figures and the parties have agreed not to disclose the transaction price.
Kemira has successfully ramped up new Fennobind production capacity in Continental Europe. With the increased capacity, Kemira is preparing to launch the 2nd generation Fennobind products that will further increase the production output and the end value to the customer. Reception in the market has been very positive and Kemira will continue to invest in the technology.
Binders are used to bind the coating pigments and the coating layer to the base paper in order to improve paper optics and printability. Due to improved binding strength of the product, Fennobind’s patented technology allows lower manufacturing costs for paper and board producers.
Kemira will hold its 2013 Capital Markets Day (CMD) in London today.
Kemira is maintaining its existing outlook for 2013. Revenue in local currencies and excluding divestments is expected to be slightly higher (0%-5%) than in 2012, and operative EBIT is expected to be significantly higher (>15%) than in 2012.
Kemira's medium-term financial targets for 2016 remain as previously communicated.
- revenue EUR 2.6 - 2.7 billion
- EBITDA-% of revenue 15%
- gearing level < 60%
In addition, Kemira expects its medium-term operative tax rate to be in the range of 22%-24%. This rate excludes non-recurring items and the contribution of income from associated companies.
The theme of the CMD is "Delivering a profitable water pure-play". Wolfgang Büchele, President and CEO, will comment on the structural changes that are contributing to meeting the financial targets and improving Kemira's return on capital employed.
"Kemira is targeting an operative EBIT margin of 10% in 2014. The target is expected to be achieved through a number of factors, including the Fit for Growth cost savings, additional efficiency measures, like the Vaasa process chemicals site closure and the establishment of a global Business Service Center, as well as synergies relating to the recent 3F acquisition (closure of the transaction expected on October 1, 2013). In addition, the reorganization and changes in the business model in Municipal & Industrial are expected to result in more than EUR 5 million savings once fully implemented.
As previously communicated, our capex-to-sales ratio is expected to decrease from 6% in 2012 to 5% in 2016. Capital expenditure is focused on growth markets and differentiated product lines. Acquisitions are also expected to contribute to Kemira's mid-term growth targets. M&A criteria require that M&A targets must strengthen Kemira's market position and/or technologies and/or competencies, as well as being EBIT accretive in the second full year after closing.
Kemira's business portfolio focus is shifting from commodity to differentiated businesses. Consequently, we are evaluating exit options for the ChemSolutions business, which include formic acid and its derivative product lines. Together with the ongoing Fit for Growth cost-saving measures, continuous efficiency measures, the introduction of LEAN manufacturing and the implementation of our SKU (Stock Keeping Unit) reduction program, the company's business portfolio restructuring is expected to also improve return on capital employed. Our ambition in 2016 is for return on capital employed to be in line with the European chemical sector average, i.e. more than 15%.
Innovation is the key organic growth driver, and Kemira is targeting EUR 250 million revenue from innovation sales (i.e. sales from new products or existing products for new applications launched within the previous 5 years) in 2016 (EUR 106 million in 2012). Our next generation Fennobind product for the paper and board market and new products for wet shale applications in the oil and gas industry are all examples of the growing relevance of our innovation pipeline," says Büchele.
Other Kemira speakers at the CMD include Petri Castrén, CFO, Frank Wegener, President, Municipal & Industrial segment, Heidi Fagerholm, CTO, Michael Löffelmann, SVP, Restructuring, Louis Rosati, VP, R&D and technology and Reetta Strengell, Senior manager, R&D and technology.
Kemira has just signed a 5+1+1 year EUR 400 million revolving credit facility with eight banks. This is a committed credit facility to be used for general corporate purposes. The new facility replaces undrawn EUR 300 million facility signed in June 2011. The loan agreement includes a financial covenant based on gearing.
Banks acting as Mandated Lead Arrangers and Bookrunners are Nordea Bank, Danske Bank, Citi Bank, Commerz Bank, Pohjola Bank plc, SEB and Swedbank. ING N.V. acts as Lead Arranger. Nordea Bank and Danske Bank acted as the Coordinators.
Source: Kemira Oyj
In line with its strategy, Kemira has retained SEB for a process to review strategic options for its ChemSolutions segment.
In Q1 2013, Kemira divested ChemSolutions' food and pharmaceuticals businesses and sold its shares in JV Sachtleben. Kemira continues the re-alignment of its portfolio. Accordingly, a process has been initiated to review the strategic options for ChemSolutions.
According to its strategy, Kemira focuses on pulp & paper, oil & gas, mining and water treatment and provides expertise and tailored combinations of chemicals for water-intensive industries. ChemSolutions is a non-core part of Kemira's business with limited synergies to Kemira's core business.
Kemira's global website Kemira.com and the Finnish language version Kemira.fi were redesigned and updated with new visuals and functionalities as well as improved content in spring 2013.
”We wanted to create an online service that combines good customer service with high-quality content,” says Liisa Tikkanen, Online Media Manager, Kemira.
The main purpose of the redesign of Kemira.com was to make information easier to find and serve various interest groups more efficiently. The improved website offers information on Kemira’s expertise, products and services to existing and potential customers as well as prospective employees.
Focus on content
During the renewal most of the content was produced by Kemira’s experts. The structure reflects the company’s service model as an expert organization: the further visitors proceed on the website, the more detailed and technical information they will be provided. In addition, the website has specific sections for investors, analysts and reporters seeking financial information and tools for analyzing it.
“We also made use of social media features when optimizing usability. The content is easy to share, and our real-time Twitter feed is available on the website. In addition, we publish event information and images on Facebook,” says Tikkanen.
Kemira.com attracts an average of 36,000 visitors each month, mostly from Finland, the United States, Great Britain, Germany and India. “Our products and applications attract the most interest by far. In addition, many are interested to learn more about Kemira as a company, browse open positions and financial information or look for contact information.”
The redesigned website provides direct contact information for technical experts and sales. ”We wanted to replace impersonal contact forms with direct contacts. This is a relatively new approach in our field, but we believe it will improve customer service,” says Tikkanen.
The website is available in English and in Finnish and will be published in Chinese next.
Kemira will open a new AKD-emulsion line in Finland to better serve big sizing clients. New capacity will be available during fall 2013.
AKD is an alkyl ketene dimer based sizing agent, which impacts paper and board hydrophobicity or water resistance. Sufficient hydrophobicity is important for packaging materials and it improves paper or board runnability in a coating process. Water resistance also improves printability and dimension stability of the final product during the converting process. In addition to AKD-emulsions, the new process is capable to produce unique Gamma-emulsion, which is based on two sizing components.
Kemira holds complete supply chain from key raw materials to the final emulsion product.
Kemira and General Electric (GE) are excited to announce that, effective immediately, Kemira’s Paper Segment will furnish GE Water & Process Technologies’ boiler and cooling water chemical product technologies to the pulp and paper industry.
Kemira is the only global chemical company with a primary strategic focus on pulp and paper and is actively expanding and broadening its pulp and paper offering. “Adding boiler and cooling treatment strengthens Kemira’s commitment to be a highly valued resource to our customers in every area of the mill”, says Joe Stockman, Director of Boiler and Cooling treatment for Kemira’s Paper Segment.
Kemira's customers will benefit from the addition of GE’s advanced boiler and cooling water treatment products. In addition, they will be able to utilize the GE Water & Process Technologies Service Reliability Center which provides monitoring of customer’s key process variables. Kemira already provides a high level of technical service. The paper industry now has a new choice for boiler and cooling water treatment; proven Kemira on-site service coupled with proven GE product technology.