Russian paper mill US$252 million investment
06 March, 2002
Anglo American plc ("Anglo American") to invest US$252 million in Russian paper mill Anglo American's subsidiary, Mondi Europe, has agreed to acquire an additional 68.5% of the voting stock in the Russian Syktyvkar Forest Enterprise business ("Syktyvkar").
The Mondi Europe group already has a 19.4% interest in Syktyvkar, which was acquired in 1997. The acquisition remains subject to clearance by the Russian anti-monopoly authorities.
Mondi Europe will acquire the 68.5% interest for a cash consideration of US$252 million. The assets include Syktyvkar, the logging and transportation, construction and engineering companies of the Group and the entire sales organisation.
The controlling interest of approximately 87.9% will form part of Mondi Europe's wholly owned subsidiary, Neusiedler. Neusiedler is a leading producer of uncoated woodfree office communication paper, with existing production of approximately 1 million tonnes. The deal will strengthen Neusiedler's leading position as a European manufacturer of copy and office paper with mills in Austria, Hungary, Slovakia and Israel.
Syktyvkar is located near the capital of the Northern Russian Republic of Komi. The mill, which has 4 paper machines and is fully integrated with its own pulp production, has production capacity of approximately 700,000 tonnes annually, comprising approximately 400,000 tonnes of uncoated woodfree paper, 150,000 tonnes of corrugated paper and 150,000 tonnes of newsprint. Syktyvkar is one of the most important employers in the republic of Komi.
Notes to Editors:
Anglo American plc is one of the world's largest mining and natural resource groups. With its subsidiaries, joint ventures and associates, it is a global leader in gold, platinum group metals and diamonds, with significant interests in coal, base and ferrous metals, industrial minerals and forest products. The group is geographically diverse, with operations in Africa, Europe, South and North America and Australia. (www.angloamerican.co.uk)
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