media release

Eka Chemicals Expands in South America

Akzo Nobel's Pulp and Paper Chemicals business is set to become the biggest producer of sodium chlorate in Latin America.

Akzo Nobel’s Pulp and Paper Chemicals business, Eka Chemicals, is set to become the largest sodium chlorate producer in Latin America after agreeing to form a joint-venture with Chilean company Celulosa Arauco y Constitución S.A.

The new company, Eka Chile S.A., is investing in a new chlorate plant to be erected adjacent to the existing Eka Chemicals plant in Talcahuano, ownership of which has now been transferred to the new joint-venture.

Once the new extension has been completed, Eka Chile S.A. will become the largest sodium chlorate producer in South America, with a total annual capacity at the location of 85,000 tons.

Eka Chemicals, based in Sweden, is the biggest supplier of chlorate in the world and has been a supplier to the Chilean market for many years.

Celulosa Arauco y Constitución S.A. is a major consumer of sodium chlorate at its kraft pulp mills, as well as being a big producer of electric energy from biomass.

The cooperation between the two companies will form a solid base for a future safe supply of sodium chlorate, which is of growing importance as a bleaching agent in the Latin American market, due to its benign environmental effect.

(Released: April 4, 2003)