ALABAMA, PULP AND PAPER MILL; JOINT VENTURE TO BUILD NEW PAPER MACHINE
BOISE, Idaho, Oct. 16 /PRNewswire/ -- Boise Cascade Corp.
(NYSE: BCC) and Companhia Suzano de Papel e Celulose, a major Brazilian
pulp and paper producer, announced today the signing of a letter of
intent to form a joint venture to acquire and operate Boise Cascade's
pulp and paper mill, timberlands, and wastepaper recycling plant in
Jackson, Alabama. The joint venture will also expand the annual
production capacity of the mill to 460,000 tons from its current
capacity of 130,000 tons. The centerpiece of the mill's expansion will
be a new 354-inch-trim uncoated free sheet paper machine, which
represents a $290 million capital investment by the joint venture.
Boise Cascade and Suzano will each own 50% of the joint venture.
"This investment will allow the Jackson facility to improve its cost
position and operate very competitively," said Boise Cascade's chairman
of the board and chief executive officer George Harad. "At the same
time, the expansion will allow us to better meet our customers' needs.
Market conditions and Boise Cascade's greatly improved financial
position make the timing right for this investment. Expanding in
partnership with Suzano makes this investment all the more sound and
opens the door for Boise Cascade and Suzano to explore other cooperative
Max Feffer, Suzano's executive vice president, said that the
investment "continues Suzano's program of geographic and natural
resource diversification, building on our foundation in Brazil in
eucalyptus pulp and paper production. The Jackson mill will be a world-class facility and we expect that, with Boise Cascade's operating and
domestic marketing strength and Suzano's experience in international
marketing, the joint venture will be a very competitive factor in the
When complete, the new 910-ton-per-day paper machine will be capable
of producing approximately 330,000 tons annually of uncoated free sheet
paper, including office, offset printing, forms, and envelope papers.
The Jackson facility will have both virgin and recycled pulp capacity
available to supply the new machine, which is expected to begin
production in April of 1997.
Boise Cascade Corp. is an integrated paper and forest products
company headquartered in Boise, Idaho, with operations located
throughout the United States. The company manufactures and distributes
paper and paper products, office products, and building products and
owns and manages timberland to support these operations.
Suzano is the largest integrated producer of eucalyptus pulp and
paper in Latin America and pioneered the development of eucalyptus pulp
processing technology. Headquartered in Sao Paulo, Brazil, Suzano
operates one pulp mill and three paper mills in the Sao Paulo vicinity,
holds substantial interests in two other Brazilian pulp and paper
producers, and is part of the control group of three Brazilian
/CONTACT: Andrew Drysdale of Boise Cascade, 208-384-7992, or Home:
CO: Boise Cascade Corp.
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