UPM to sell its logging company in Russia to International Paper
UPM and International Paper have signed an agreement concerning the sale of UPM's ownership in the Russian logging company ZAO Tikhvinsky Komplexny Lespromkhoz. According to the agreement, the operations, permanent personnel and logging license covering 184,000 hectares of forest area in Tikhvin in the Leningrad oblast will transfer to International Paper Russia Holding B.V. The parties have decided not to disclose the transaction price. The final closure of the transaction is subject to the approval of Russian Federal Antimonopoly Service.
UPM acquired Tikhvinsky in 2005 and has invested considerable time and effort in improving both its operational and financial results. In 2007, Tikhvinsky received FSC forest certification, which recognizes the company's successful environmental performance.
“We are delighted with the acquisition of ZAO Tikhvinsky Komplexny Lespromkhoz. It represents another very important step in the implementation of our wood supply strategy”, says Franz Marx, President, International Paper Russia.
"Tikhvinsky has been a good opportunity for UPM to learn and develop forestry in practice in Russia. However, UPM has reviewed its wood sourcing strategy in Russia and decided to sell its logging rights in Tikhvin," states Tuomo Visanko, Senior Vice President, Forest and Timber Business Area, UPM.
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