Foreign Investments Europe Case studies Kisuma

Kisuma

Background
With the exception of the Far East, Kisuma Chemicals BV (KCBV) is responsible for the worldwide production, marketing and sale of magnesium compounds based on magnesium chloride. The company is part of Kisuma Euro BV, a subsidiary of the Japanese Kyowa Chemicals.  At the end of the 1990s, Kyowa decided to branch out either into Europe or the US. The choice fell upon Veendam, thanks to the presence of magnesium-enriched salt layers in the direct vicinity. Another deciding factor was the rapport and the mutual trust between the directors of Kisuma and Nedmag, a supplier of magnesium salts from Veendam. This choice of location proved to be the right one. The production capacity has been increased considerably over the years in order to meet growing market demand. Finance then became necessary in order to expand further, and the KCBV therefore approached the NOM.

The request: Over the past years, our company has developed to become one of the most quickly growing concerns of the northern Netherlands. Extra capacity is required in order to continue to meet market demand. We are looking for financing possibilities. How can you help us?

The initial steps
The NOM participates only in promising companies, in economic activities which will also be profitable in the future. The first step was therefore to determine the requirements and the opportunities of the KCBV. What exactly do you want to achieve? What is the nature of your markets?  How do you think your product can achieve an even better market position? And how does the management plan to do so?

Final phase and results
Our examination of KCBV gave a very favourable picture for the future. This was based, for example, on the environmentally friendly solutions offered by the company for a variety of applications in the plastics industry. Think in terms of heat stabilisation of PVC, as an alternative for lead compound solutions, for example. In this growing market, KCBV has reliable customers and various long-term contracts. And so financing was granted. The new production line at KCBV has recently been commissioned.