IP swaps mills with VCP

0

 

19 September 2006 — Sao Paulo (BRA): International Paper (IP) is to exchange pulp mills with Votorantim Celulose e Papel SA (VCP) to increase its Brazilian footprint.

 

IP will swap its pulp mill project, currently being developed in the Brazilian state of Mato Grosso do Sul, along with almost 100,000 hectares of forestland for VCP’s Luiz Antonio pulp and uncoated paper mill and 60,000 hectares of forestland, which is located in Sao Paulo.

 

IP will fund its pulp mill project to the amount of $1.15 billion.

 

The transaction is expected to close in February 2007 and is part of company’s plans to focus on uncoated papers.