Helsinki, 2011-04-13 11:00 CEST (GLOBE NEWSWIRE) --
UPM and International Paper have signed an agreement concerning the sale of UPM's ownership in the Russian logging company ZAO Tikhvinsky Komplexny Lespromkhoz. According to the agreement, the operations, permanent personnel and logging license covering 184,000 hectares of forest area in Tikhvin in the Leningrad oblast will transfer to International Paper Russia Holding B.V. The parties have decided not to disclose the transaction price. The final closure of the transaction is subject to the approval of Russian Federal Antimonopoly Service.
UPM acquired Tikhvinsky in 2005 and has invested considerable time and effort in improving both its operational and financial results. In 2007, Tikhvinsky received FSC environmental certification, which recognizes the company’s successful environmental performance.
“We are delighted with the acquisition of ZAO Tikhvinsky Komplexny Lespromkhoz. It represents another very important step in the implementation of our wood supply strategy”, says Franz Marx, President, International Paper Russia.
"Tikhvinsky has been a good opportunity for UPM to learn and develop forestry in practice in Russia. However, UPM has reviewed its wood sourcing strategy in Russia and decided to sell its logging rights in Tikhvin," states Tuomo Visanko, Senior Vice President, Forest and Timber Business Area, UPM.
For futher information, please contact:
UPM: Tuomo Visanko, Senior Vice President, Forest and Timber Business Area, +358 400 352 990
International Paper Russia: Sergei Tanaschuk, Director, Government Relations and Communications, +7 925 080 9790, sergei.tanaschuk@ipaper.com
UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people and it has production plants in 15 countries. In 2010, UPM's sales amounted to EUR 8.9 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com
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 and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs about 59,500 people in more than 24 countries and serves customers worldwide. 2010 net sales were more than $25 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.