Coated paper

International Paper comes out of the joint venture with Shandong Sun Holding Group


International Paper, with factories in North America, Europe, Latin America, Russia, Asia and North Africa, has recently announced that they have drawn up a final agreement with Shandong Sun Holding Group Co, their Chinese partner in the joint venture for the manufacture of coated paper (IP-Sun JV), to sell their own shareholding of 55%. As consideration for the sale, International Paper will receive 149 million RMB (equal to about 23 million dollars) in cash. Furthermore, IP will remove about 400 million dollars of their current debt from their own balance sheet, together with other assets and liabilities of IP-Dom JV, following the completion of the transaction. International Paper has also announced that they are assessing strategies for their own cardboard boxes business in China and South-east Asia, signing a non-binding letter of intent with a prospective purchaser with offices in China. The IP-Sun JV transaction will be completed in the next six months, after compliance with some conditions of closure, amongst which is the obtaining of Chinese government approvals.