Finnish company acquires Roe Lee and bids for Diachem

PRESS RELEASE
August 21, 1995
Finnish company acquires Roe Lee
and bids for Diachem

Raisio Chemicals of the Finnish Raisio Group, has acquired the British Roe Lee Paper Chemicals Group and announced its intention to buy the Canadian company Diachem Industries. The moves will add nine new plants to Raisio's chain of paper chemicals manufacturing sites.

The acquisitions will strengthen the company in the UK, France and North America and add about 180 people to its 2000-strong payroll.
"This is a major step forward for us", says Raisio Chemical's Managing Director, Tor Bergman. "We are already a leading supplier to the paper and board industry in northern Europe and we plan to build a similar position elsewhere in Europe and in North America. Both Roe Lee Paper Chemicals and Diachem complement our own business and will allow us to offer a wider range of products to better satisfy the changing demands of the paper and board industry."
The Roe Lee group comprises Roe Lee Paper Chemicals Co. Ltd of Blackburn, England; Claymore Chemicals Ltd. of Aberdeen, Scotland; Paperion Chimie S.A. of Sens, France; and Roe Lee Canada Inc, of Cornwall, Ontario. The group specializes in the manufacture of sizing dispersions and turnover this year is estimated at USD 22 million.
Diachem Industries Ltd has five plants in Canada and a sales company, Diachem Pacific Northwest Inc., in the

United States. Other companies in the group are Diachem Chile S.A.; Emerillon Polymers Inc. in Canada; and Diaztech S.A. de C.V. in Mexico. The Canadian plants are located in British Columbia, Ontario and Quebec. Diachem's turnover this year will be about USD 38 million from its range of pulp and paper chemicals and chemicals for effluent treatment.
Raisio Chemicals develops and produces chemicals for the paper and board industry. The product range comprises chemicals for wet end, coating and recycling. The company's rapid growth is based on extensive research and product development. In the last four years, Raisio Chemicals has, in addition to normal product development, invested some USD 30 million in research and pilot facilities, such as the world speed record pilot coater in Raisio.
Raisio Chemicals has production facilities in Finland, Belgium, France, USA, Italy and Portugal, and sales companies in Sweden and Germany.
The annual turnover of the chemical division will rise to some USD 315 million. Raisio Group has a turnover of USD 830 million.

For further information, please contact:
General Manager Kai Hannus
Raisio Chemicals Headquarters
P.O. Box 101
FIN-21201 Raisio, Finland
Tel: +358 21 434 2645

Esko Sarkki
European operations, Belgium
Tel: +32 58 315 904

Timo Kasvi
North American operations, USA
Tel: +1 717 657 9897

Alan Whitehead
North American operations, Canada
Tel: +1 613 932 3443