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Industrial Chemicals

As the year progressed, volume and pricing strengthened across our Industrial Chemicals portfolio. Volume increased 10 percent in 2010 as demand for caustic, chlorine derivatives and salt recovered strongly. Improved pricing across all businesses, led by caustic, and the revenue recognized from the secondary use of salt caverns were key drivers of the 13 percent top line growth. The performance in MCA significantly increased during the year, largely as a result of a reduced cost structure and improved asset utilization. The overall business performance is now benefiting from the site rationalization actions of 2009 and the integration of the LII acquisition.

Q4 revenue increased 16 percent on improved margins and volume. Volume increases were driven by Salt and MCA. Salt benefited from the early start of the winter in Europe. MCA demand was high, leading to record production volumes in both Europe and China. The production facilities in Skoghall were closed according to plan.

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