International Paper has entered into a binding agreement with Holmen Paper to purchase Holmen’s newsprint mill in Madrid, Spain, and intends to convert the facility to produce recycled containerboard.

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International Paper signs agreement to acquire Holmen Paper Madrid Mill

Mar 17, 2016. /Lesprom Network/. International Paper has entered into a binding agreement with Holmen Paper to purchase Holmen’s newsprint mill in Madrid, Spain, and intends to convert the facility to produce recycled containerboard, as the company said in the press release received by Lesprom Network.

Under the terms of the agreement, International Paper would purchase the Madrid newsprint Mill, as well as associated recycling operations and a 50% ownership interest in a cogeneration facility. The transaction is expected to close during the 2Q 2016, subject to certain regulatory approvals.

International Paper plans to convert the newsprint facility during the second half 2017 to produce recycled containerboard with an expected capacity of 380,000 metric tonnes, safeguarding employment prospects at the facility.

The Company’s aggregate investment in the project, including the purchase price and conversion costs is anticipated to be Euro150 million. Once completed, the converted mill will support the Company’s corrugated packaging business in EMEA. Holmen and International Paper intend to work closely on a smooth transition.

International Paper is a global leader in packaging and paper with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.