Acquisition of Brazil's pulp producer Lwarcel Celulose is in line with RGE's strategy to increase its global pulp capacity, the group said.
Singapore based industrial group Royal Golden Eagle (RGE), the parent company of Asia Pacific Resources International Limited (APRIL), has entered into an agreement with Brazil's Lwart Group to acquire 100% of Lwarcel Celulose’s assets in Brazil. The acquisition is subject to approval by Brazil’s antitrust authority, and is expected to complete in the second half of 2018.
Lwarcel Celulose runs one paper mill with a production capacity of 250,000 tpy of bleached eucalyptus kraft pulp and fluff pulp in Lençóis Paulista, São Paulo. According to Lwart group, all wood consumed by Lwarcel comes from planted eucalyptus forests.
RGE manages a group of resource-based manufacturing companies with global operations, operating in the segments of pulp and paper (APRIL, Asia Symbol), palm oil (Asian Agri, Apical) specialty cellulose (Bracell), viscose fibre (Sateri) and energy (Pacific Oil and Gas). "The acquisition of Lwarcel Celulose is in line with RGE’s strategy to increase its global pulp capacity for competitive advantage. The plan is to operate Lwarcel Celulose as a new and independent business group within RGE while optimising synergies with RGE’s global pulp operations," RGE announced.