Ahlstrom Completes JV With Brazil's VCP
Sept. 4, 2007 - Ahlstrom yesterday said that it has completed its joint venture formed with Votorantim Celulose e Papel (VCP).
Ahlstrom originally announced the JV in February 2007. The deal involves Ahlstrom becoming a majority stakeholder in VCP's integrated pulp and specialty paper mill in Jacarei, Brazil.
Ahlstrom will hold 60% and VCP 40% of the shares in the joint venture.The price for Ahlstrom's shareholding is approximately EUR 80 million.
The annual specialty paper production capacity of the mill is about 110, 000 tons, with net sales in the range of EUR 100 million.
The JV will serve mainly the labeling applications and certain flexible packaging markets. Additionally, the mill will continue to produce coated and uncoated paper grades for other end uses.
The companies have agreed that VCP will supply utilities and other services as well as eucalyptus pulp from an integrated 1.1 million ton pulp mill to the joint venture at competitive prices, Ahlstrom said.
Under the terms of the deal, Ahlstrom has an option to purchase the remaining share in the joint venture held by VCP after two years time.
See related story:
- Ahlstrom enters papermaking joint venture in Brazil (2/23)