AkzoNobel has signaled its strategic intent to accelerate growth by investing close to EUR90 million in a new facility being built in Brazil. The plant, operated by the company’s Pulp and Paper Chemicals business, Eka Chemicals, will supply the world’s largest pulp mill.
The agreement with Eldorado Celulose e Papel emphasizes the importance of high growth markets to AkzoNobel and will help drive the medium-term strategy of doubling revenue in Brazil to EUR1.5 billion. It also underlines the value the company attaches to securing long-terms partnerships with customers.
The investment, AkzoNobel’s biggest ever in Latin America, is centered on further expanding Eka Chemicals’ sustainability focused Chemical Island concept. It will involve supplying, storing and handling all chemicals for the 1.5 million tons per year green field mill, which is being constructed in the northern part of Três Lagoas City. The mill is expected to come on stream in September 2012.
