International Paper Offloads Chinese Corrugated Packaging Business
15 Mar 2016 --- International Paper, the food packaging company which makes cups, lids and containers for restaurants, is offloading its corrugated packaging business in China and Southeast Asia for around $150 million.
It is selling the business to investment firm Xiamen Bridge Hexing Equity Investment Partnership Enterprise.
International Paper is selling a business which has 18 plants in Asia and employs around 3,000 staff.
The deal is expected to be completed in the coming months.
It underscores that International Paper would prefer to export into China from the US than manufacturing from China.
One reason is that it sees no benefit from manufacturing in China because of the high-cost of importing raw materials.
International Paper has manufacturing operations in North America, Europe, Latin America, Russia, Asian and North Africa and employs around 55,000 people.
Its businesses include industrial and consumer packaging, including making plates, snack containers and lids.
Its net sales in 2015 were $22 billion.
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