Brazilian forestry company Arauco has agreed a deal with Stora Enso to buy assets in its company based in Arapoti near São Paulo.
Arauco has agreed to take full control of the Stora Enso Arapoti sawmill, purchase 80% of the shares in the company’s forest holdings and take a 20% share in its coated paper mill.
The deal will cost Arauco US$208m, with Stora Enso noting that the divestment will have “no material impact” on the company’s third quarter results.
“Joint ownership of the forest holdings and paper mill will enable Stora Enso to develop co-operation with Arauco,” said Nils Grafström, president of Stora Enso Latin America.
“The co-operation between the two companies could eventually result in other joint projects in Latin America.”
Stora Enso Arapoti owns 30,000ha of forest, has the capacity to process 150,000m3 of materials a year at its sawmill and can produce 205,000 tonnes of lightweight coated paper at its paper mill.
