IP and Jari consume Association on packaging

The American International Paper (IP), the world's largest manufacturer of printing and writing papers, and Brazilian Jari Cellulose, Paper, and Packaging of grupo Orsa, Orsa Constitution concluded International Paper packaging, new corrugated manufacturer with operations in the country. The operation, originally announced in October, sum $ 470 million, related to the IP investment. On the other hand, Jari landed industrial assets in joint venture.
With the completion of the deal, which was approved by the Administrative Council for economic Defense (Cade) at the end of last year, three paper mills to packages and four production units of corrugated boxes belonging to Jari pass for the new company, in which the multinational has 75% participation. Jari's forest assets, as well as the pulp mill in para-whose activities were suspended, are not involved in the transaction.
For the IP, the partnership with Jari brand their national packaging market, business that represents an important source of revenue for the company in other countries. With the assets of Jari, the American company assumes the rank of third-largest local supplier of cartons, with production capacity of 365 000 tons per year, or the equivalent of about 9% of the national market.
The Executive Presidency of Orsa International Paper Packaging will be occupied by Marc Van Lieshout, who was Chief Financial Officer of IP in Latin America. "We will go through a transition process while maintaining the highest standard of quality and customer service," says the Executive in a statement.
In a statement, the Chairman of the Board of Directors of John Faraci, IP, says the investment is aligned to the global strategy for the packaging business. "International Paper is in Brazil for over 50 years and we are excited about this partnership, which represents a platform for entry into the segment of corrugated boxes in a strategic region."
Last year, according to preliminary data from the Brazilian Association of corrugated board (ABPO), domestic sales of cardboard, important economic activity thermometer of the country, totaled 3.3 million tons, with a high of 2.77% compared to 2011, and marked a new record for the industry.