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 ventures worldwide." 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 market." 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 petrochemical companies. -0- 10/16/95 /CONTACT: Andrew Drysdale of Boise Cascade, 208-384-7992, or Home: 208-344-2206/ (BCC) CO: Boise Cascade Corp. ST: Idaho IN: PAP SU: -0- (PRN) Oct/16/95 8:07 EOS (PRN) Oct/16/95 08:07 86 â -0- (PRN) Oct/16/95 8:22
BOISE CASCADE AND SUZANO TO FORM JOINT VENTURE FOR BOISE'S
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