SCA, Stockholm, Sweden, this week reported that it has signed an agreement to sell its Asian packaging operations to International Paper Co., Memphis, Tenn., USA, and will focus on hygiene growth in Asia. The reported purchase price is $200 million in cash. In 2009, SCA's Asian operation reported sales of some $250 million and had approximately 4,500 employees at 13 corrugated box plants and two specialty packaging facilities, primarily in China, but also in Singapore, Malaysia, and Indonesia.
"We divest our packaging business in Asia in line with our strategy, to focus on our hygiene products there," says Jan Johansson, president and CEO of SCA. The transaction is expected to be finalized during the second quarter, subject to approval from relevant authorities.
"We're buying good facilities at a good price as well as gaining an excellent team of 4,500 employees," said Paul Brown, president, IP Asia. "SCA's facilities complement our existing converting system of 12 corrugated box plants, which are principally in China. The combination strengthens our packaging business in Asia and will make it more competitive, more profitable, and better able to serve customers."
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