Finnish chemicals group Kemira has signed an agreement to form a joint venture with Yongsan Chemicals, a privately owned chemicals company in South Korea.

Kemira will make a multi-million investment in the JV and hold a 35% minority share of the company, which will be called Kemira Yongsan Chemicals and based in Ulsan.

The JV will produce dry polyacrylamide (DPAM), cationic monomer Q9 (AMD) and other chemicals that are used for retention and drainage in packaging and paper production, as well as in wastewater treatment and in sludge dewatering.

Kemira said forming a joint venture in South Korea was an important step in expanding its presence in Asia Pacific and driving profitable growth in the region.

“The joint venture accelerates our strategy and strengthens our position as a leading global polymer producer. It supports Kemira’s future growth, especially in the Asia-Pacific region by providing additional polymer capacity, securing our capacity utilization and supporting our customers better with our global delivery capability”, said Nichlas Kavander, Senior vice president, pulp & paper, Asia-Pacific.

Last month, Kemira established a JV with Shandong Tiancheng Wanfeng Chemical Technology in China to produce AKD wax and key raw material, fatty acid chloride (FACI). The Helsinki-based group was spending around €55 million to take an 80% stake in Kemira TC Wanfeng Chemicals Yanzhou.