UPM-Kymmene Corporation has signed a letter of intent for the sales of Walki Sack, UPM Kymmene's paper sack production to the Swedish Korsnäs AB.Walki Sack's turnover was in 1999 EUR 50 million and it employs 440 people, which all will move to be employed by the buyer as old personnel. The deal covers all seven Walki Sack factories in Finland, The Netherlands, the Czech Republic, Rumania and Spain. The target is to finalize the deal by the end of August, 2000.
The converting materials division of UPM-Kymmene thus continues to focus on fast growing businesses based on proprietary knowhow and product development. These include labelling and release materials as well as value added packaging materials. The division's core competencies also include envelope, sack and packaging papers and various industrial wrappings where it holds a strong market position.
For Korsnäs AB, the deal strengthens their paper sack business within Korsnäs Packaging. Walki Sack suits geographically very well with Korsnäs' present sack production in Denmark, England, Poland, Italy, Germany, the Ukraine, Croatia and Yugoslavia. The combined capacity will be about 1 billion sacks annually. This will make Korsnäs Packaging the second largest sack producer on the European market.
For further information, please contact:
Pentti Kallio, President, UPM Converting, tel. +358 204 150015
Frej Nygård, Vice President, UPM Converting, tel. +358 204 150733
UPM-Kymmene Corporation
Corporate Communications
21 June 2000
