IP to exit Chinese coated board joint venture

International Paper announced that it had entered into a definitive agreement with its Chinese coated board joint venture partner, Shandong Sun Holding Group, Ltd to sell its 55 percent equity interest in the joint venture for the equvalent of about 23 million USD.

IP said that it undertook a thorough review of its position in serving the Chinese and Asian markets and concluded it would be more effective supplying this region with globally competitive products primarily through its Ilim joint venture in Russia and from the US. However, international said it remained committed to serving these very important markets.

The IP-Sun JV has one manufacturing location in Shandong Province in China, which includes four paper machines and approximately 1,4 million annual metric tonnes of coated board capacity.