media release

Chemicals expansion in key markets

Akzo Nobel will invest EUR 26 million in two chemical businesses in Sweden – a further capacity increase at the expanding ethylene amines production facility in Stenungsund, and the construction of a new plant in Skoghall to manufacture water treatment chemicals.

“Akzo Nobel has stated its commitment to support growth in five Chemicals platforms with clear prospects for profitable leadership,” said Leif Darner, Akzo Nobel’s Board Member responsible for Chemicals. “These two investments will offer significant benefits, particularly in terms of establishing and consolidating leadership positions.”

The expansion project in Stenungsund is already underway and will transform the facility into one of the biggest plants of its kind in the world. This latest investment will boost annual production capacity of ethylene amines to 75,000 tons by the end of 2006.

“We are fully committed to ensuring global availability of our products in line with the needs of our customers,” said Christina Tenfält, General Manager of the Company’s Ethylene Amines business, one of the largest producers of the full range of ethylene amines in Europe, and one of the leading suppliers for the global market.
“The capacity we have available at our large-scale Swedish plant, combined with our facility in Germany, means that we can be a committed supplier of ethylene amines to all our customers, wherever they are located.”

The new Skoghall facility – scheduled for start-up before the end of the year – will manufacture ferric chloride and will have an annual production capacity of 35,000 tons. Once operational, it will further propel the business towards establishing a leading position in the water treatment chemicals market in the whole of North West Europe.

“Constructing this new plant will enable us to secure and build on our current market position in the Nordics, as well as helping the business to take a major step towards establishing a top ranking in water treatment chemicals throughout North West Europe,” said Peter Kuijpers, Manager of Akzo Nobel’s Eco Systems business. “The water treatment chemicals market is fairly buoyant and this is a financially sound project which benefits both the business and the site.”

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