International Paper to buy Madrid-based recycled paper operations

International Paper has signed an agreement with Holmen to buy latter’s newsprint mill in Madrid, Spain.

SPOKANE (Scrap Monster): International Paper has signed an agreement with Holmen to buy latter’s newsprint mill in Madrid, Spain. The agreement also covers Holmen’s energy and recycled paper operations at the facility. The press release issued by International Paper states that the mill will be converted into containerboard production.

According to Henrik Sjölund, Holmen CEO and President, the transaction is part of its ongoing efforts to focus on development of speciality paper strategy at our Swedish mills. The sale of the Madrid mill will help the company’s printing paper operations to deliver good profits going forward.

Meantime, company press release noted that International Paper will continue production of newsprint paper until the second half of next year. Towards the end of next year, the mill will be converted into containerboard. As per the agreement, Holmen will have rights to serve its existing customers by selling the newsprint produced at the mill. The sale transaction also includes Holmen’s 50% shareholding in the energy producer Peninsular Cogeneración S.A. and the recycled paper collector Cartón y Papel Reciclado S.A. (Carpa).

Holmen is a Swedish company which bases its business in the forest industry and the pulp and paper industry. Holmen's main products are paperboard for consumer packaging and graphical applications.

International Paper is a global leader in the paper and packaging industry with manufacturing operations in North America, Europe, Latin America, Asia and North Africa. Headquartered in Memphis, Tenn., the company employs approximately 65,000 people and is strategically located in more than 24 countries serving customers worldwide.

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