10 INDUSTRY NEWS
Pulp Paper & Logistics
Smurfi t Kappa expands its packaging empire into Brazil
the acquisiti on of two locally- based fi rms for €186 million (US$203m). Both companies, Industria de Embalagens Santana and Paema Embalagens, are privately-owned integrated packaging businesses. Their combined operati ons include three containerboard mills using recycled material, with a total capacity of 210,000 tonnes, and four corrugated faciliti es servicing the north east of Brazil, through the Rio and Sao Paulo regions and the south of the country. Ireland-based Smurfi t Kappa said the size and locati on of the combined operati ons will build on its leading positi on as the largest pan-regional corrugated packaging supplier in Lati n America. Smurfi t Kappa will also enhance the two businesses through the applicati on of its best-in-class operati ng systems and design and innovati on capability.
P
aper-based packaging manufacturer Smurfi t Kappa has entered the Brazilian market with
The combined businesses employs more than 1,700 people. Smurfi t Kappa currently expects to generate synergies of approximately €6 million to be delivered by the end of 2017, primarily through operati onal improvements and supply-chain opti misati on as the businesses are integrated. Tony Smurfi t, chief executi ve of Smurfi t Kappa Group, commented: “We are pleased to announce the acquisiti on of INPA and Paema,
which will extend our reach into a strategically important market and build on our geographic diversity and strength. We look forward to welcoming the experienced teams into the Smurfi t Kappa Group. “We are confi dent that their
experti se and the high quality of their asset base will provide us with a strong entry point into the Brazilian market and, as the leading pan-regional operator in Lati n America, further strengthen our service off ering to our existi ng
internati onal customers.” The acquisiti on in Brazil follows a number of smaller moves last year that totalled €210 million, added about 3 percent capacity and strengthened the company’s footprint in Lati n America. These were in El Salvador, Costa Rica, Dominican Republic and Mexico. Growth rates in Lati n America are higher than SKG’s stronghold market of Western Europe, where it sti ll generates about three quarters of its sales.
Resolute claims $70m damages from Canada
Resolute Forest Products has fi led a Noti ce of Arbitrati on under the North American Free Trade Agreement (NAFTA) in response to measures taken by the former provincial NDP Government in Nova Scoti a and the former Conservati ve Government of Canada in support of the Port Hawkesbury paper mill.
January/February 2016
Resolute contends that those measures discriminated in favour of Port Hawkesbury and resulted, among other damages, in the closing of Resolute’s Laurenti de mill in October 2014, depriving Resolute of its investment in that mill, and the value of other investments, in violati on of Resolute’s rights under NAFTA as a US investor in Canada.
Damages for direct losses of about US$70 million, consequenti al damages, and additi onal costs and relief deemed just and appropriate by an arbitral tribunal are being claimed by Resolute. Under NAFTA and applicable principles of internati onal law, Canada is responsible for Nova Scoti a’s acts. Resolute Forest Products is
a global leader in the forest products industry with a diverse range of products, including newsprint, specialty papers, ti ssue, market pulp and wood products. The company owns or operates more than 40 pulp, paper, ti ssue and wood products mills in the US, Canada and South Korea, as well as power generati on assets in Canada.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36