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)