Raisio Chemicals Ltd., Raisio, Finland and Emsland-Stärke GmbH, Emlichheim, Germany, have decided to form a Joint Venture to sell and market the parent companies’ chemicals and starch products to the paper industry in Germany, Austria and Netherlands. "The result of this merger offers customers an advantage, as the strength´s of Raisio´s know how and Technology Centers and Emslands strength as a quality starch producer are made available to customers through new highly qualified sales and technical service organization," says Mr Günter Herms, Chairman of the Board at Emsland-Stärke.

The name of the new enterprise will be "Emsland Raisio Chemie GmbH" and it will be located in Hamburg. Both Raisio and Emsland will bring their present businesses in paper industry into the new company. Emsland Raisio Chemie GmbH will operate as a part of Raisio Chemicals' global operations. It is anticipated that the company commence operations this spring. Estimated turnover for the first 12 month period is approximately 60 million DEM.
Raisio Chemicals is part of the Finnish Raisio Group which is engaged in the food, animal feed and chemical industries. Turnover of the Group in 1996 was 3928 million FIM of which chemicals make 34%. Raisio Chemicals' operations with production units in 11 countries are globally focused to serve pulp and paper industry. It specialises in binders, specialty chemicals as well as equipment and environmental technology. It is one of the worlds leading suppliers of cationic starches and sizing agents.
Emsland-Stärke is worlds second largest potato starch producer with five factories in Germany. Main shareholders are german potato growers. The annual production is approximately 400,000 tons of starch. Turnover of Emsland is over 400 million DEM and it exports its products to more than 100 countries./ins


For further information please contact:

Timo Kasvi, Raisio Chemicals Ltd.
tel. +358 2 434 2294 or +358 50 514 7462

Helmut Harms-Ensink, Emsland-Stärke GmbH
tel. +49 5943 81 222