Ahlstrom, a global leader in fiber-based materials, announced the completion of the joint venture formed with Votorantim Celulose e Papel (VCP).

The joint venture, originally announced in February 2007, is created for specialty papers production and will be located in Jacarei, Brazil, close to São Paolo. Ahlstrom will hold 60% and VCP 40% of the shares in the joint venture. The price for Ahlstrom's shareholding is approximately EUR 80 million. The annual specialty paper production capacity of the joint venture is approximately 110 000 tons and net sales approximately EUR 100 million.


The joint venture will serve mainly the labeling applications and certain flexible packaging markets. Additionally, it will continue to produce coated and uncoated paper grades for other end uses. The parties have agreed that VCP will supply utilities and other services as well as eucalyptus pulp from an integrated 1.1 million ton pulp mill to the joint venture at competitive prices.

"The joint venture allows us to enter the rapidly growing labeling and packaging markets in Latin America and further strengthens our position as the leader in the global specialty paper markets", comments Jukka Moisio, President and CEO of Ahlstrom. Under the terms of the agreement, Ahlstrom has an option to purchase the remaining share in the joint venture held by VCP after two years time.