IP to Acquire UPM Russian Logging Operations
 Print this article | Send to Colleague
International Paper Co., Memphis, Tenn., USA, has agreed to acquire UPM's (Helsinki, Finland) Russian logging company ZAO Tikhvinsky Komplexny Lespromkhoz. According to the agreement, the operations, permanent personnel, and logging license covering 184,000 hectares of forest area in Tikhvin in the Leningrad oblast will transfer to International Paper Russia Holding B.V. The parties have not disclosed the transaction price. Final closure of the transaction is subject to approval of the Russian Federal Antimonopoly Service.
UPM acquired Tikhvinsky in 2005 and has invested considerable time and effort in improving both its operational and financial results. In 2007, Tikhvinsky received FSC forest certification
"We are delighted with the acquisition of ZAO Tikhvinsky Komplexny Lespromkhoz. It represents another very important step in the implementation of our wood supply strategy", says Franz Marx, president, International Paper Russia.
"Tikhvinsky has been a good opportunity for UPM to learn and develop forestry in practice in Russia. However, UPM has reviewed its wood sourcing strategy in Russia and decided to sell its logging rights in Tikhvin," noted Tuomo Visanko, SVP, Forest and Timber Business Area, UPM.
|
|
