Strategic Expansion 2005
Veendam, February 20, 2004
Kisuma Chemicals BV has decided for a strategic expansion of its current plant for producing specialty magnesium compounds in Veendam, the Netherlands.
This expansion will be achieved by installing a third production line, to be built in two separate phases. The target completion date for the first phase is set in the course of Q4 2004. Total completion is targeted for mid 2007, the detailed timing of which will depend on actual market developments. Total investments will end up in the range of Euro 20 mln, of which approx. 60% is linked to the first phase.
Prior debottlenecking of the plant and further preparations for this strategic expansion have been managed so far by a consortium of regional consultants and engineers Tebodin (Groningen, NL) and Wieringa (Veendam, NL). The latter will be made responsible for the detailed engineering of the first phase, the construction of which will be done under own project management. Tebodin’s activities will be focused on making the necessary preparations for the second phase of the quoted investment.
After completion, the name plate capacity of the plant in Veendam will have been doubled, as compared to the original plant set-up that was designed for approx.10.000 mt/year. Due to a major debottlenecking operation, which was concluded in the course of last year, approx. 40% of the targeted future name plate capacity has already been effectuated.
A major part of the investment is aiming for a further improvement of the environmental performance of the plant, both in terms of solid waste production and energy efficiency. The latter will be improved a.o. by means of state-of-the art drying techniques.
Kisuma Chemicals BV is the European affiliate of Kyowa Chemical Industry Co., Ltd. from Japan. Since 1999 it operates a new plant in the North of the Netherlands that is serving the polymer producing and processing industry with heat stabilizing, acid scavenging and flame retardant products. Also marketing and sales (worldwide excluding Asia-Pacific) is coordinated from its head office in Veendam. In 2003, the turn-over increased with 20% to approx. Euro 24 mln. In Veendam, Kisuma employs approx. 60 people. For the near future a further increase, both in turn-over and in personnel, is foreseen.
One of the main markets for Kisuma’s products is for the use as heat stabilizer in PVC applications. Especially in Europe, in recent years a move away from lead containing stabilizers towards environmentally more acceptable alternatives may be observed. Kisuma’s Alcamizerâ hydrotalcite products are key components for such. The voluntary commitment of the joint EU PVC producing and processing industry to eliminate the use of lead containing stabilizers in all other, both rigid and flexible, applications step by step towards 2015 is expected to enhance the sales of Kisuma’s products further in the years to come. The projected expansion is supposed to be sufficient to cover the market needs for the medium term. For the longer term, however, additional capacity may be necessary to safeguard the future suppliability and to maintain Kisuma and Kyowa’s joint global market leadership.