IP, Grupo Orsa to Form Joint Venture in Brazil
 Print this article | Send to Colleague
International Paper Co., Memphis, Tenn., USA, and Brazilian corrugated packaging producer Jari Celulose, Embalagens e Papel S/A, a Grupo Orsa company, have entered into an agreement to form a joint venture that will support IP's strategy of growing its global packaging presence and better serving its global customer base. Jari's industrial packaging assets, including three containerboard mills and four box plants, will be separated from its pulp and forestry businesses and transferred to a newly formed company in which IP will hold a 75% stake. IP's investment in the joint venture will be BRL 952 million.
"This partnership fits well with International Paper's strategy to globally grow our corrugated packaging business in strategic regions of the world," said John Faraci, chairman and CEO. "We are excited about Brazil's growing market and this investment provides us with an attractive position with a strong return on investment."
With an agreement now in place, the companies expect to finalize the transaction early in the first quarter of 2013, subject to various closing conditions and governmental approvals.
IP is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. IP employs some 70,000 people and is strategically located in more than 24 countries serving customers worldwide. Its net sales for 2011 were $26 billion. Temple-Inland Inc., acquired in February 2012, had 2011 net sales of $4 billion.
|
|
