Kemira and Rockwood to form leading TiO2 JV

Kemira Oyj (Helsinki, Finland; www.kemira.com) and Rockwood Holdings Inc. (Princeton, N.J.; www.rocksp.com) have agreed to form a joint venture (JV) that includes both parties’ titanium dioxide businesses and the functional additives business owned by Rockwood. The transaction values Kemira’s TiO2 business in excess of 250 million euros and will result in a small capital gain for Kemira. In addition, the transaction will have a positive cash flow effect and reduce Kemira´s net debt by approximately 120 million euros. The deal is subject to approval by the competition authorities and is expected to close during Q3 in 2008. The new JV will include Rockwood’s titanium dioxide pigments and functional additives businesses, including its production facilities in Duisburg, Germany and Kemira’s titanium dioxide business, including Kemira’s titanium dioxide plant in Pori and Kemira’s technical research center specializing in TiO2 products in Oberhausen, Germany and its U.S. subsidiary, Kemira Specialty, Inc. The new specialty titanium dioxide company will be headquartered in Germany and had a pro forma turnover of approximately 560 million euros in 2007. The new company will have a yearly production…