HELSINKI: Forest group Stora Enso is to set up a paperboard joint venture in Pakistan with Packages Ltd as it shifts focus from ailing papermaking to healthier areas such as the packaging business.
Stora Enso, which holds 6.4 per cent in Packages Ltd, has said it sees fibre-based consumer board consumption in Pakistan growing 9 per cent annually. It said the joint venture's sales were forecast to be $130 million this year.
The Finnish company said both partners will invest $135 million into the joint venture during 2013 and 2014. The agreed value of the company was about $108 million.
Stora, saying every third beverage carton in the world is made from its materi
als, earlier this year announced a plan to invest 1.6 million euros to build a consumer board and eucalyptus pulp mill in China. It had earlier planned to boost its industrial packaging board production in Poland by investing 285 million euros.
The Pakistan deal , subject to regulatory approval, is seen being completed in the first quarter of next year.