Akzo Nobel Invests in Paper Chemicals in the U.S.

Business Editors

ARNHEM, the Netherlands--(BUSINESS WIRE)--May 21, 2001

Eka Chemicals, Akzo Nobel's Pulp and Paper Chemicals business unit, has decided to build a new processing plant for production of silicate products in the Village of Howard, Green Bay, WI, in the U.S.

The plant will primarily support the growing demand for Eka Chemicals' performance chemicals for the paper industry.

Eka Chemicals will invest USD 13 million (EUR 14.6 million) in the production unit, with start up scheduled in mid 2002.

Jan Svard, President of Eka Chemicals, said: "Eka Chemicals continues to develop a broader range of performance chemicals for the paper industry with a special emphasis on a new program, Compozil Select, for the retention field.

"The planned unit is the latest in a series of investments which Eka is making in different markets, including Asia, to enable us to serve our strategic customers in the pulp and paper industry on a global basis."

Byron Smith, Eka's General Manager Paper Chemicals, said: "This plant will allow us to meet the demand from our Mid-West customers and completes our coverage of the important pulp and paper industry regions in North America, putting colloidal silica capacity close to our customers."

Compozil is a leading paper chemicals system for retention and drainage, based on inorganic nanoparticles and Eka proprietary polymers. Today, more than 300 paper machines around the world use the system.

In addition to paper chemicals there will also be production lines for colloidal silica products for other applications, for example in the electronic and food industries.

The plant will initially employ 10 to 15 people.

Note for the editor

Pulp & Paper Chemicals, operating under the name Eka Chemicals, is a business unit of Akzo Nobel. It is headquartered in Bohus, Sweden and employs 3,080 employees in thirty countries.

Eka Chemicals is a leading supplier of bleaching chemicals, paper chemicals and systems to the pulp and paper industry, as well as certain specialty chemicals to the pharmaceutical, electronic and water treatment industries.

Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2000 totaled EUR 14 billion (USD 13 billion, GBP 8.5 billion). The Company currently employs 68,800 people in more than 75 countries. Financial results for the second quarter of 2001 will be published on July 25, 2001.

Internet: http://www.akzonobel.com

http://www.ekachemicals.com

http://www.compozil.com

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