Kemira Will Spin Off Paints, Cut Jobs

The Finnish chemical company Kemira will spin off Tikkurila, its coatings business, into a separate public company. Tikkurila accounted for 22% of Kemira's $3.9 billion in 2007 sales. Kemira says the remaining company will be organized into paper, water, and oil and mining segments that have water conservation and management as a common theme. In May, Kemira announced that its other big business, titanium dioxide pigments, would become part of a joint venture with Rockwood Holdings. Meanwhile, Kemira CEO Harri Kerminen says he expects profits to be down for the year. In response, the firm has launched a program to eliminate about 1,000 positions from its worldwide payroll of 10,000 and save more than $75 million in annual costs.