Market and customer segments

Kemira has organized its business into four customer based segments: Paper, Municipal & Industrial, Oil & Mining and ChemSolutions. ChemSolutions has previously been reported under Segment Other, but will be reported as a separate segment as of January 1, 2013.

PaperMunicipal & IndustrialOil & MiningChemSolutions
Customers
Pulp and paper industry Municipal drinking and waste water treatment plants, industrial waste and process water plants Oil, gas and mining industry Feed, farming, leather, detergent, airports and chemical industries.
Number of employees at Dec 31, 2012
 1,510 1,090 517 276
Revenue in 20121
 EUR 1,002.0 million  EUR 686.6 million  EUR 321.1 million  EUR 186.0 million
Product range
Comprehensive product range for pulp and paper wet-end. Main products coagulants and flocculants (polymers). Antiscalants/corrosion, biocides, coagulants, defoamers, dispersants, flocculants, emulsifiers. Formic acid, sodium percarbonate, leather tanning agent  and products based on organic acids.
Markets
Accessible market size approx. EUR 26 billion of which EUR 7.6 billion is relevant for Paper. Accessible market size approx. EUR 26 billion of which EUR 7.5 billion is relevant for M&I. Accessible market size approx. EUR 26 billion of which 9.4 billion* is relevant for O&M. Accessible relevant market size approximately EUR 2 billion.
Market position
One of three key players globally* #1 in coagulants and #3 in flocculants worldwide Ranges from 1 to 4 depending on market and product line* #2 in formic acid

Leading position in Feed Acids globally and in Airport runway De-icing/Europe.
Market dynamics and business drivers

Shift towards emerging markets, with few globally present competitors.

Stricter environmental regulation, focus on energy efficiency and recycling. Increasingly important role of water management and related new technologies.

Need for chromium free tanning agent, new chemical applications for formic acid, expanding feed acids market APAC and Americas.

Water link
Efficient utilization of water at the core of pulp and paper manufacturing.

Energy consumption, product quality, process runability and customers’ profitability depending on water efficiency
Reliable water treatment for municipalities and industries.

Coping with water related challenges such as water scarcity, cost, quality as well as stricter regulations for discharges.
Increased total process efficiency requirements for water-intensive oil and mining processes.

Applications reducing costs, minimizing water consumption and increasing yield.

Focus on environmental regulations – waste water and reuse
More efficient leather tanning process reduces water consumption and simplifies water treatment.

Preservation of feed and raw materials reduces the amount of water needed for feed production

*Management estimate

¹ According to the old organizational structure. Restated figures will be published in March 2013.