International Paper Co., Memphis, Tenn., USA, this week completed the acquisition of SCA's (Stockholm, Sweden) Asian packaging operations for $200 million in cash. In 2009, the Asian operation reported sales of approximately $250 million and had some 4,500 employees at 15 plants in China, Singapore, Malaysia, and Indonesia.
In regard to the divestment, Jan Johansson, president and CEO of SCA, earlier noted that "we divest our packaging business in Asia in line with our strategy, to focus on our hygiene products there." Finalizing of the transaction, which will not result in any capital gain or loss, SCA reports, follows approval by the relevant competition authorities.
Paul Brown, president, International Paper Asia, said that the acquisition strengthens IP's industrial packaging business in China—the largest corrugated market in the world, "and it extends our presence in Southeast Asia. We have an experienced leadership team in place and our business will now be more competitive and better able to serve customers in this fast growing region of the world."
IP's industrial packaging business in Asia now has 27 plants, including 21 facilities in China, and operations in Thailand, Malaysia, Singapore, and Indonesia.
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