UPM-Kymmene and Korsnäs AB have signed a Letter of Intent for the sale of UPM-Kymmene's paper sack production, Walki Sack, to Korsnäs.
The deal covers all seven Walki Sack factories in five countries, with 440 employees and net sales of approx. 51 million Euro in 1999.
For Korsnäs AB, the deal strengthens the paper sack business within Korsnäs Packaging. Walki Sack has a very good geographical fit with present Korsnäs Packaging sack production facilities in Denmark, England, Germany, Italy, Poland, the Ukraine, Croatia and Yugoslavia. The combined capacity will reach about 1 billion sacks per year. This will make Korsnäs Packaging the second largest producer on the European market.
The Converting Materials division of UPM-Kymmene can now increase focus on business areas such as labelling and release materials as well as packaging materials with developed barrier properties. The division's core competencies also include envelope and packaging papers and various industrial wrappings where it holds a strong market position.
The following production facilities are included in the deal:
Walki Sack in Pori, Finland
Walki Sack B.V. in Edam, The Netherlands
Walki Sack, Ploiesti, Rumania
Walki Sack s.r.o.,Uvalno, The Czech Republic
Walki Sack S.A., Zaragoza, Spain
Walki Sack S.A., Almeria, Spain
Walki Sack S.A., Gran Canaria, Spain
The purchase price will not be published and the deal will be finalized by the end of August, 2000.
For further information, please contact:
Vigo Carlund, President Kinnevik, +46 8 56200000
Christer Simrén, President Korsnäs AB, +46 26151000www.upm-kymmene.com www.korsnas.com