media release

Pulp Mill Plans Terminated

Akzo Nobel has decided not to renew the letter of understanding for a proposed supply of chemicals to a new pulp mill in Indonesia.

The project, which involved the company’s Pulp and Paper Chemicals business, Eka Chemicals, was first mooted in 1998, but Akzo Nobel’s involvement has never progressed past the evaluation phase.

A non-binding letter of understanding had been exchanged, but since Akzo Nobel has not been informed about any substantial progress in the project, the company deemed it necessary to terminate the letter of understanding when it expired on December 31, 2002.

The proposed project hit the headlines recently when environmental campaigners expressed fears that a large area of tropical rainforest on the island of Kalimantan would be destroyed and local communities disrupted.

Since no final plans or conditions of the project have been presented, Akzo Nobel has not made any evaluation of the Kalimantan project.

The company maintains that in general, it will refrain from participating in projects if they do not satisfy the criteria of sound financing, a safe and reliable supply of raw materials and an approved performance in terms of environmental impact in compliance with national laws and regulations.

(Released: January 8, 2003)

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