Ahlstrom signs an agreement to form a joint venture for specialty paper production in China
Ahlstrom Corporation STOCK EXCHANGE RELEASE 21.9.2007
Ahlstrom, a global leader in fiber-based materials, today announced that it has signed the agreements with Zhejiang Kan Specialty Material Co (KAN Paper) and its management to acquire a majority shareholding in a specialty papers joint venture in China, as announced on September 10, 2007. In accordance with the agreements, Ahlstrom will hold 70% of the shares in the joint venture. The debt-free value of the acquisition is expected to be approximately EUR 10 million.
The assets in the joint venture currently comprise a paper machine, water treatment and 15 hectares of land in Kaifeng, China. The annual production capacity of the joint venture is approximately 12,000 tons and it employs 130 people.
The joint venture will be part of Ahlstrom's Technical Papers business area, is mainly aimed to serve the local crepe paper markets and serves as a platform for Ahlstrom's further growth in China. The market for crepe papers in China is estimated to grow approximately 15% annually.
The deal is expected to be closed during the fourth quarter of 2007. The completion of the transaction is subject to regulatory approvals and satisfactory conclusion of the due diligence process. The final transaction price will be confirmed in connection with the due diligence process. Ahlstrom will purchase the remaining share in the joint venture after two years.
Ahlstrom has currently one manufacturing site in China producing dust filtration materials as well as three sales offices.
Ahlstrom Corporation
Jukka Moisio, President & CEO
For further information, please contact:
Jukka Moisio, President & CEO, Ahlstrom Corporation, tel. +358 (0)10 888 4700
Risto Anttonen, Senior Vice President, Commercial Operations, Ahlstrom Corporation, tel. +358 50 597 8400
Risto Anttonen, Senior Vice President, Commercial Operations, Ahlstrom Corporation, tel. +358 50 597 8400
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Helsinki Stock Exchange
Main media
www.ahlstrom.com
Ahlstrom in brief
Ahlstrom is a global leader in the development, manufacture and marketing of high performance fiber-based materials. Nonwovens and specialty papers, made by Ahlstrom, are used in a large variety of everyday products, such as filters, wipes, flooring, labels, and tapes. Based upon its unique fiber expertise and innovative approach, the company has a strong market position in several business areas in which it operates. Ahlstrom's 6,200 employees serve customers via sales offices and production facilities in more than 20 countries on six continents. In 2006, Ahlstrom's net sales amounted to EUR 1.6 billion. Ahlstrom's share is listed on the Helsinki Stock Exchange. The company website is www.ahlstrom.com.