MOSCOW (MRC) -- Kemira has completed the installation of new state-of-the art production units for emulsion polymers and bio acrylamide monomer at its manufacturing site in Mobile, Alabama. Production has started and the facility is expected to be fully operational during summer 2021, as per the company's press release.
The value of the investment is around EUR70 million and it will support Kemira’s strategic focus to grow faster than the market.
“The capacity expansion in Mobile will strengthen Kemira’s position in the energy market in the Americas and supports our growth in the region going forward. The market demand is recovering after the 2020 slowdown and we’re in a good position and excited to meet the growing demand of our customers for high quality emulsion polymers.” says Pedro Materan, SVP, Global Oil & Gas.
The emulsion polymer products are primarily used in water intensive applications, including friction reducers for the oil and gas industry, where Kemira is a leading supplier.
The investment in new capacity allows Kemira to address the steadily growing need for polyacrylamide polymers. Backward integration into bio acrylamide production also improves the sustainability position, product quality and competitiveness for Kemira’s customers.
As MRC reported earlier, in September 2020, Kemira signed a multi year extension of its polymer supply agreement with Ithaca Energy. Kemira said it had signed a multiyear extension to its polymer supply agreement with Ithaca Energy (Aberdeen, UK). The agreement extends the contract between the two companies, signed in 2018, covering the supply of polymers to enhance oil extraction performance at one of the assets operated by Ithaca Energy in the UK North Sea.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
Kemira is a global leader in sustainable chemical solutions for water intensive industries. The company's focus is on pulp & paper, water treatment and oil & gas. In 2020, Kemira had annual revenue of around EUR2.4 billion and around 5,000 employees. Kemira shares are listed on the Nasdaq Helsinki Ltd.