Sappi Limited divests its entire shareholding in Jiangxi Chenming to Shandong Chenming Paper to focus on high growth businesses.
Sappi Limited will exit its Jiangxi Chenming Paper joint venture in China. The company announced it has signed an agreement to sell its entire 34% shareholding in the Jiangxi Chenming to the joint venture partner Shandong Chenming Paper. Sappi expects the transaction to be completed before 30 September The total consideration for Sappi’s interest in Jiangxi Chenming is $41.58m, approximately RMB263,53m.
Sappi explains its decision to exit the JV with a change in its strategic focus. “Sappi will remain active in China in particular through its release liner and chemical cellulose businesses,” said Sappi CEO Ralph Boettger.
Jiangxi Chenming joint venture was founded in 2004 by Shandong Chenming, Sappi, the South-Korean paper manufacturer Moorim Paper and the International Finance Corporation (IFC). The company runs one paper machine with an installed capacity of 350,000 of LWC.
According to Shangdong Chenming, IFC and Moorim Paper will exit the joint venture as well. Both partners have already agreed to sell their shareholding in Jiangxi Chenming to Shangdong Chenming who will become the sole owner of the pulp and paper mill in the city of Nanchang.
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