International Paper Purchases Polish Firm
PURCHASE, N.Y. (AP) _ International Paper announced on Tuesday the purchase of its first manufacturing location in Eastern Europe, Poland’s largest white papers manufacturer.
International Paper plans to pay up to $150 million initially for the Polish government-owned company, Zaklady Celulozowa-Papierniecze SA.
It plans to make a capital investment of an additional $175 million in the company over four years.
The site, located about 180 miles northwest of Warsaw, is the only integrated bleached pulp and paper company in Poland, International Paper said. The Polish company’s sales in 1991 were $140 million.
John A. Georges, chairman of International Paper, said Zaklady is ″an excellent strategic asset well suited for domestic expansion and export development.″
Michal Rusiecki of Poland’s Ministry of Privatization said the Polish paper industry needs capital investment because of intense domestic competition.
International Paper, a major producer of printing and writing papers, paperboard and packaging products and wood products, has manufacturing operations in 26 countries and exports products to more than 130 nations.