Ilim Group, Akzo Nobel to Build, Operate JV Sodium Chlorate Plant in Russia

Ilim Group, Russia's largest producer of forest products, and Akzo Nobel Chemicals International BV (associated company of AkzoNobel), the Netherlands, this past week signed a long-term joint venture agreement regarding a sodium chlorate production plant to be located in Koryazhma, in the Arkhangelsk Oblast region of northwestern Russia. The plant will be majority-owned and operated by AkzoNobel.

The sodium chlorate production plant will be fully managed and operated by AkzoNobel's Pulp and Paper Chemicals business, Eka Chemicals, in cooperation with on-site partner Ilim Group.

Paul Herbert, CEO of Ilim Group, noted that "we are glad that our cooperation with one of the world's leading chemical producers is reaching truly new levels. Ilim is the leading pulp and paper company in Russia, so it was crucial for us to find a strategic partner who would be interested in the long-term development of our non-core asset. I am sure that our cooperation will be mutually beneficial."

Ruud Joosten, managing director of Eka Chemicals, added that "this fits very nicely into the AkzoNobel growth strategy for markets such as Russia. By entering into this venture, we look forward to further expanding our opportunities in a market with high future potential."

Byron Smith, SBU Director of Eka Chemicals Europe, said that "we are delighted to become a local producer of bleaching chemicals in Russia, as this gives us an extended platform for future growth in both pulp and paper chemicals in the country."

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