NOBEL BUYS CHLORATE PRODUCER

NOBEL BUYS CHLORATE PRODUCER

Sweden's Nobel Industries AB said it purchased Stora Kemi, the chemical arm of Swedish pulp and paper manufacturer Stora Kopparbergs Bergslags AB, for US$322 million.

Stora Kemi, a producer of chlorate used in pulp and paper bleaching, will be integrated into Eka Nobel, Nobel's manufacturing arm.Nobel said the acquisition will strengthen its position in North and South America and will increase Eka Nobel's annual revenues from 2.7 billion Swedish Krona (US$449 million) to US$665 million.

Eka Nobel operates five production plants in Sweden, two in North America, and has four manufacturing units under construction in North America, Venezuela and New Zealand, and a fifth planned in France. The plants will produce bleaching agents for the pulp and paper industries.

Stora Kemi operates several plants in Sweden and has subsidiaries in Norway, Brazil, Canada, and Chile.