Chile's Arauco, Brazilian papermaker Klabin agree to US$474M purchase of 107,000 ha. of land in Brazil's Parana state to expand pulp and paper operations
November 4, 2011
– Celulosa Arauco y Constitucion SA of Chile and Brazilian papermaker Klabin reached an agreement on Friday to spend US$473.5 million on a joint purchase of 107,000 hectares of land in Brazil’s state of Parana, reported Reuters on Nov. 4.
The purchase is intended to enable the companies to expand pulp and paper operations in Brazil, because of the country’s cost advantages. Brazil has low production costs and high forestry potential compared with North America and Europe, reported Reuters.
Centaurus Holdings, a joint venture in which Klabin holds a 51% stake and Arauco holds 49%, will make the transaction, according to a securities filing, Reuters reported.
The purchase includes 107,000 hectares (264,000 acres) of land with 63,000 hectares of planted forest, currently owned by Florestal Vale do Coriso.
The Brazilian government is in the process of trying to limit foreign purchases of its land, which has attracted an increasing amount of investment from Chilean pulp companies in recent years.
The primary source of this article is Reuters, London, England, on Nov. 4, 2011.