12/18/2024
Growth Drivers
Water and renewable solutions are at the heart of Kemira. Water is expected to be the key contributor for revenue growth going forward and our new long-term ambition is to double the revenue in water. While we aim to accelerate growth in these areas, we continue to take excellent care of our base business.
Kemira serves water-intensive industries, and our solutions help make more clean, safe water available to everyone. From food production to the energy industry or metals and mining, we help water intensive industries to improve their process and resource efficiency, contributing to the end-product quality. Water treatment is an increasingly important part of all our customer industries, as raw water, process water, and wastewater need to be appropriately managed, in the most cost-effective way. Sludge treatment offers opportunities for further efficiencies and for creating value from waste.
Global megatrends drive our business forward
The two most important global megatrends driving growth of Kemira’s end markets are changing demographics and increasing environmental awareness, which is further resulting in tightening regulation.
Changing demographics
Growing middle-class and urbanization
Higher use of water and tissue
Changing lifestyles with growth in e-commerce
Higher use of packaging and board
Growing environmental awareness
More efficient use of scarce natural resources
Chemicals to support circular economy needs
Focus on renewable and recyclable materials for our customers
Alternatives to fossil fuel-based solutions
Tightening environmental regulation
Increased need for water treatment & recyclable packaging
Climate change mitigation
Increased need for water treatment
Safe and clean water
Clean water is essential not just for life itself, but for making sure we can live high-quality, enjoyable lives.
We at Kemira can make a difference with both out water handprint and water footprint.
Increasing our water handprint
Kemira serves water-intensive industries, and our solutions help make more clean, safe water available to everyone.
Natural raw waters contain impurities that can present a threat to human health. Kemira’s products remove particles, color, algae and harmful bacteria from the raw water in order to safely prepare it for tap water supply. Chemical water treatment enables clean, safe and affordable drinking water for all.
Improving our water footprint
Kemira produces our chemistry with lowest possible impact on water resources. In our own operations, we are continuously evaluating opportunities to improve our water management.
About 90% of our total water withdrawal is used for cooling purpose only. It can be discharged without any treatment required. Still, we will continuously work to improve our water footprint further.
In 2021, Kemira joined the CEO Water Mandate, to solidify our commitment to world class water management. Kemira’s ambition is to improve our water management to Leadership level based on CDP Water Security scoring methodology by the end of 2025.
Water at the core of the growth
Water treatment is increasingly critical – both waste water and drinking water treatment. The regulation is becoming tighter in both Europe and America, which is accelerating the demand for chemical water treatment.
In line with our growth strategy, we are seeking growth by expanding our current business, as well as by constantly exploring various M&A opportunities or possibilities to acquire new technologies. For example, there is an increasing need to find technologies for removing micropollutants, such as microplastics and dangerous per- and polyfluoroalkyl substances (PFAS) from water. One possible technology is activated carbon. Kemira has taken steps by acquiring Norit’s reactivation business for activated carbon in the UK, and by starting to plan Kemira a reactivation plant for activated carbon in Sweden.
Strong position in water treatment
Kemira’s customers utilize large amounts of resources, like energy, water and raw materials. Kemira’s products are usually a small fraction of the customer process or end product, but like chemistry often does, these products can have a significant impact in terms of saving valuable resources.
Water expertise
We use our water treatment expertise to help municipalities and water intensive industries optimize every stage of the water cycle.
- Wastewater
- Drinking water
- Raw water
- Sludge
Service offering
We are the only manufacturer to offer a full product portfolio of coagulants, polyacrylamide polymers, process chemicals, and other water treatment chemicals, along with our smart digital technologies.
Market position
#1 in water treatment (coagulants and polymers) in Europe & among the top 3 in North America (coagulants)
Topics that might interest you
Efficient water management in the pulp & paper industry
The manufacture of paper, board, and tissue requires large volumes of water when processing fibers and fillers. Environmental concerns and the pressure for energy efficiency limit the use of fresh water and require high water efficiency from the pulp and paper industry. Chemical water treatment and process chemistry together with advanced digital services help minimize water usage in papermaking and enable effective water circulation in a closed process.
As an example, Kemira’s products help to minimize the amount of clean, fresh water used in the mill by enabling the circulation of process water in a closed loop up to even 80 times.
Safeguarding water ecosystems
Urban wastewaters contain pollutants from human or industrial use. The natural water cycle can no longer manage water pollution by itself. Kemira’s products remove phosphorus and other organic pollution in order to protect rivers, lakes and oceans from overfertilization and loss of biodiversity.
Without purification, our rivers, lakes and oceans would not be able to survive. Chemical wastewater treatment removes organic pollutants, such as phosphorus in order to protect our water bodies from overfertilization and loss of biodiversity.
Municipal water and wastewater treatment
Municipal water and wastewater treatment plants are forced to comply with tightening regulatory requirements, while tackling global megatrends, such as climate change, a growing population and scarcity of resources combined with rising costs and supply-chain insecurities.
Water treatment for pulp & paper industry
In pulp production the usage of water is huge but with chemistry expertise enables sustainable and cost-efficient chemical control, leading to consistent performance and water quality. Real-time process and performance data and automated dosage control enable faster reaction to changes in the process and help avoid chemical over and under dosing.
Food industry
In food industry every efficiency and quality improvement counts. We help customers with chemistries that address needs for process optimization and energy and water efficiency. In addition to supplying high-performance chemicals for water treatment, we can also help with overall energy management. For example, by optimizing wastewater pre-treatment and maximizing biogas production, significant savings can be achieved.
Sludge
Sludge from wastewater treatment must be dewatered to the highest possible dry solids content to make transport, utilization and disposal more econimical. Producing biogas from organic sludge is a viable way to reduce energy costs.
Renewable solutions also a strategic priority
In addition to the target to double the water business, we aim for 500 million of our revenue to come from renewable solutions by the end of 2030.
We have four paths to reach the EUR 500 million
renewable revenue target
Attractive growth possibilities
We are especially exploring growth possibilities in three areas: biomass-balanced products, renewable coatings and alpha glucan.
Biomass-balanced products
- Products based on biobased feedstocks
- Growth expected to come both from new revenue and partial substitution of existing fossil-based products
Renewable coatings
- Renewable barriers for paper & board packaging, enabling recyclability and biodegradability of products as well as plastics replacement
- Several products in the pipeline, based on various renewable feedstocks
Alpha glucan
- Platform of renewable polymers capable of replacing fossil-based equivalents in several applications, such as packaging and water treatment
- Collaboration with International Flavors and Fragrances (IFF) since 2020
Growth opportunities for Packaging & Hygiene Solutions and Fiber Essentials
There are several attractive growth possibilities also in the pulp and paper industry. Molded and textile fibers, renewable chemistry solutions and digital services provide lucrative end markets for Packaging & Hygiene Solutions. Furthermore, Fiber Essentials has interesting possibilities for its largest business, sodium chlorate, especially in the expanding market in South America.
Investor contacts
Mikko Pohjala
Vice President, Investor Relations
Helsinki, Finland
Heidi Lehmuskumpu
Investor Relations Manager
Helsinki, Finland