AkzoNobel to Build Chemical Island for Suzano's Maranhao Pulp Mill

AkzoNobel will construct a chemical island facility at Suzano's new 1.5 million tpy bleached eucalyptus pulp mill in Maranhao, Brazil.

Feb. 1, 2012 - AkzoNobel is planning to invest EUR 80 million in the construction of a new pulp Chemical Island facility in Brazil.

The plant, operated by the companyís Pulp and Paper Chemicals business, Eka Chemicals, will supply the Suzano Maranhao pulp mill.

This is AkzoNobelís second largest investment in Brazil in the past 12 months and further expands Eka Chemicalsí sustainability-focused Chemical Island concept.

"This 15-year agreement emphasizes the importance of high growth markets for AkzoNobel and will help drive the companyís medium-term strategy of doubling revenue in Brazil to EUR 1.5 billion," said Rob Frohn, AkzoNobel Executive Committee member responsible for Specialty Chemicals.

The investment will involve supplying, storing and handling all chemicals for the 1.5 million ton per year pulp mill, which is being constructed in Imperatriz, Maranhao, Brazil. The mill is expected to come on stream 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 Pulp and Paper 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."

Commenting on the agreement, Ernesto Pousada, COO at Suzano Papel e Celulose, said, "Eka Chemicals is a long and reliable partner to Suzano Papel e Celulose. Via this deal, we are ensuring our plant will use the latest and most sustainable chemicals available — something which has been key for us."

The new facility will expand AkzoNobelís well-established pulp and paper activities in Brazil. The business already successfully runs Chemical Islands, as well as other production units, on several customer sites. It also operates bleaching and paper chemical plants in Jacarei, Rio de Janeiro, Tres Lagoas and Jundiai.

AkzoNobel currently employs over 2,700 people in Brazil, and its 2010 revenue totaled close to EUR 850 million. The majority of revenue is generated from local demand. The companyís ambition is to achieve revenue of EUR 1.5 billion in Brazil by 2015.

SOURCE: AkzoNobel