Finnish-Swedish pulp and paper producer Stora Enso and Chile's lumber products manufacturer Celulosa Arauco announced Friday a deal to jointly operate a paper and lumber complex in Parana state, southern Brazil.
The agreement brings about a control shake-up of a paper plant and 30,000 hectare lumber plantation and mill purchased by Stora Enso from U.S International Paper for 415 million U.S. dollars in 2006. The complex is located in the municipality of Arapoti, 250 kms from Curitiba, Parana's capital.
Arauco, which makes lumber products in countries including Argentina and Uruguay, will take control of the lumber plantation and mill, with Stora Enso holding a minority share.
Meanwhile, Stora Enso will manage the paper production side of the business in line with its strategic plans, although Arauco will hold a 20 percent stake. Stora Enso aims to produce 205,000 tons of paper a year at the plant, supplied with raw material by Arauco.
Stora Enso sold stakes in the lumber plantation and mill to Arauco for 208 million dollars.