BOISE, Idaho, June 29 /PRNewswire/ -- Boise Cascade Corp. (NYSE: BCC) announced today that it has signed an agreement with Industrias Klabin de Papel e Celulose S.A. to establish a 50-50 joint venture in Brazil to produce and market pine lumber. The new company, Klabin Boise Madeiras, will export approximately 85% of its total output, mainly to the United States. The new company will utilize both Klabin's and the joint venture's own forests in Parana State and Boise Cascade's production technology and international marketing network. Plans call for the estimated US$90 million investment in the sawmill project to be financed primarily by equity contributed by the partners and long-term debt financing from Banco Nacional de Desenvolvimento Economico e Social (BNDES). The Klabin Boise Madeiras sawmill will incorporate state-of-the-art equipment and will have the capacity to produce 85 million board feet of pine lumber annually. The mill will provide approximately 400 direct jobs and 800 indirect jobs. Construction of the mill, which has been approved by the Parana Environmental Agency (IAP), will take 18 months following completion of financing arrangements. Boise Cascade Corp., headquartered in Boise, Idaho, is a major distributor of office products and building materials and an integrated manufacturer and distributor of paper and wood products. The company also owns and manages over 2 million acres of timberland in the United States. Visit the Boise Cascade web site at www.bc.com. Klabin, the largest integrated producer of pulp, paper, and paper products in Latin America, with annual sales of US$1.3 billion, owns 219,000 hectares of pine and eucalyptus forests in the southern region of Brazil which supply its own pulp and paper mills and generate sales to other manufacturers. SOURCE Boise Cascade Corp. -0- 06/29/99 /CONTACT: media, Doug Bartels, 208-384-6508, or home, 208-338-6895, or investors, Vincent Hannity, 208-384-6390, or home, 208-345-8141, both of Boise Cascade Corp./ /Web site: http://www.bc.com/ /Company News On-Call: http://www.prnewswire.com/comp/109525.html or fax, 800-758-5804, ext. 109525/ (BCC) CO: Boise Cascade Corp.; Industrias Klabin de Papel e Celulose S.A.; Banco Nacional de Desenvolvimento Economico e Social; Parana Environmental Agency ST: Idaho, Brazil IN: PAP SU: JVN -0- Jun/29/1999 18:21 EOS (PRN) Jun/29/99 18:21 ** â -0- (PRN) Jun/29/1999 18:36
BOISE CASCADE FORMS JOINT VENTURE IN BRAZIL
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