UPM-Kymmene Corporation and Rheinische Kunststoffwerke GmbH (RKW) have signed a Letter of Intent, whereby UPM-Kymmene will sell its PE-film and sack business-part of Rosenlew. Rosenlew is a part of UPM-Kymmene's converting materials division.
The deal includes plants in Pori in Finland and in Ville-le-Marclet in France. The turnover of the plants was about EUR 74 million in 1999. The whole personnel of 530 employees will be employed by the buyer as old personnel. The deal requires the approval of the competition authorities. The parties aim to complete the deal during the autumn.
Rosenlew will continue its Intermediate Bulk Container-business in Kokkola in Finland and in Belgium, France, Portugal and the United States.
The converting materials division of UPM-Kymmene thus continues to concentrate on fast growing businesses based on proprietary knowhow and product development. These include self-adhesive label papers and siliconized papers, self-adhesive label stock and flexible packaging for the food industry. The division's core competencies also include envelope and packaging papers and various industrial wrappings where it holds a strong market position.
RKW, based in Worms and a subsidiary of Renolit AG, is a leading manufacturer of films for hygiene, industrial packaging, industrial use, consumer packaging, agriculture and construction. With the acquisition RKW improves its strategic positioning and considerably enlarges the production base in Europe.
For further information please contact:
Pentti Kallio, President, UPM Converting, tel. +358 204 150015
Tapio Wartiovaara, Managing Director, Rosenlew, tel. +358 204 150481
Peter Fleissner, Managing Director, RKW, tel. +49 6241 300144
4 September 2000