VCP and IP in talks about sale of Tres Lagoas

Posted: 28 August 2006 in Brazil, International Paper, Votorantim Celulose e Papel

RISI reports that Votorantim Celulose e Papel (VCP) is in talks with International Paper (IP) about buying part of IP’s Tres Lagoas project.

International Paper owns 60,000 hectares of plantations in Tres Lagoas in Mato Grosso do Sul and is buying another 25,000 hectares. The company is considering plans for a 900,000 t/yr pulp mill and a 500,000 t/yr paper machine.

VCP offered to buy the plantations and pulp mill part of the project. But after a US$9 billion asset sale IP is more interested in expanding its papermaking capacity in Brazil than cash. IP is selling off any part of its operations that are not focussed on paper production and industrial and consumer packaging.

IP is rumoured to be interested in VCP’s 180,000 t/yr paper mill in Jacarei, Sao Paulo as part of an asset swap with VCP. VCP’s total capacity is 1.4 million t/yr of pulp and 635,000 t/yr of paper. VCP’s raw material comes from about 209,000 hectares of land in the state of Sao Paulo.

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