International Paper and llim Holding have applied to the Russian Federal Antimonopoly Service for approval of acqui…
International Paper and llim Holding have applied to the Russian Federal Antimonopoly Service for approval of acquisition rights.
Obtaining FAS approval will allow the two companies to make decisions together concerning the enterprises owned by llim Holding SA in Russia.
llim Holding operates the three largest Russian pulp and paper mills in European Russia and Siberia, and owns a majority share in St. Petersburg KPK in the Leningrad region. llim is in the process of consolidating ownership of the mills into a Russian open joint-stock company, llim Group, a subsidiary of llim Holding. llim Group will be managed jointly by a board of directors made up of representatives from both llim Pulp and International Paper. Headquarters will be stationed in St. Petersburg.
The joint venture will focus primarily on increasing output of value-added products such as office papers and packaging, as well as market pulp. llim Pulps existing wood products business will operate independently of the joint venture, as will International Papers OAO Svetogorsk business.
The two companies are currently putting the finishing touches on a long-term joint investment program of roughly $1.2 billion worth of capital investments.
Print this page
