Memphis, Tennessee, USA, 26 April 2010 -- /PRNewswire/ --International Paper (NYSE: IP), a global leader in the paper and packaging industry, today announced it signed a definitive agreement to purchase SCA's packaging business in Asia for USD 200 million in cash, subject to post-closing adjustments. International Paper expects to complete the purchase in the second quarter of 2010, subject to regulatory approval of the transaction in China.
"We're buying good facilities at a good price, as well as gaining an excellent team of 4500 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."
The SCA packaging business in Asia, which is primarily in China, consists of 13 corrugated box plants and two specialty packaging facilities. In 2009, the Asian operation reported sales of approximately USD 250 million.
“We divest our packaging business in Asia in line with our strategy, to focus on our hygiene products there,” said Jan Johansson, president and CEO of SCA.
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Its businesses include uncoated papers, industrial and consumer packaging, and distribution. Headquartered in Memphis, Tennessee, the company employs about 56,000 people in more than 20 countries and serves customers worldwide. Net sales in 2009 were more than USD 23 billion. For more information about International Paper, its products, and stewardship efforts, visit http://internationalpaper.com.