25 October 2006 — Moscow (RUS): International Paper (IP) has signed a letter of intent to form a $1.3 billion joint venture with Russian forestry firm, Ilim Pulp.
IP would take a 50 percent equity stake in Ilim Holding, which will incorporate Ilim Pulp’s four pulp and paper mills.
Under the terms of the transaction, 2.5 million tonnes of market pulp, uncoated papers and packaging will be produced a year.
The two companies will invest $1.2 billion over the next five years to boost capacity by one million tonnes a year.
The deal is expected to close in Q1 2007.