Boise Cascade Forms Joint Venture in Brazil
7/2/99
*******************************
RELAYED TEXT STARTS HERE:
Title: Boise Cascade Forms Joint Venture in Brazil
Source: PR Newswire
Status: Copyright 1999, contact source for permission to reprint
Date: July 2, 1999
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.