“Chemical Island” in Brazil

Eka Chemicals, Akzo Nobel’s pulp and paper chemicals business unit, has secured a 15 year supply agreement for the delivery of chemicals to the new Veracel pulp mill at Eunápolis in the state of Bahia, Brazil, jointly owned by Aracruz Celulose SA and Stora Enso Oyj. On completion in May 2005, the Veracel mill will be the world’s largest single-line bleached eucalyptus pulp mill, with an output of around 900,000 tons per year. As a consequence, Eka Chemicals will build and operate a “Chemical Island” adjacent to the pulp mill, which will include a chlorine dioxide plant with a 45 tons per day capacity and an oxygen production unit. The company will also build and manage the tank farm, and will handle all the pulp production process chemicals required by Veracel. In addition, the project includes construction of a 50,000 tons per annum sodium chlorate plant, which will serve not only Veracel but also other key Eka Chemicals customers in the region. The total investment for the Chemical Island and the chlorate plant amounts to around EUR 50 million.

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