Holmen Sells Spanish Newsprint Mill to IP for Containerboard Conversion

Holmen (Sweden) has signed an agreement to sell its newsprint mill in Madrid, Spain, including energy and recycled paper operations. The buyer, International Paper (Memphis, Tenn., USA), will convert the mill into containerboard production.

"This transaction allows us to focus on developing our successful speciality paper strategy at our Swedish mills," said Henrik Sjölund, Holmen CEO and president. "Holmen has the base in renewable forest and energy assets supplemented by industrial operations in paperboard, printing paper, and sawn timber. After the sale of the Madrid mill, the printing paper operations have the potential to deliver good profitability."

International Paper (IP) will continue to produce newsprint at the mill until the second half of 2017 when it is scheduled to be converted into containerboard. During this period, Holmen will sell the newsprint produced at the mill and continue to serve its customers.

Included in the transaction of assets to IP is also a recycled paper collection company and Holmen's 50% sharehold in an energy generation project related to the mill.

The financial effects of selling newsprint from the Madrid mill during the period until conversion is expected to be limited.

Closing of the transaction is subject to satisfaction of certain conditions, including anti-trust approval.

TAPPI
http://www.tappi.org/