International Paper is to acquire the remaining shares in its Turkish joint venture and said the market is set to grow at healthy levels over the next decade.
IP plans to acquire the 50% stake in Olmuska-International Paper (Olmuska) it does not already own by the end of the year, subject to regulatory approval.
The undisclosed deal with JV partner Sabanci Holdings, includes sites in Bursa, Edirne and Gebeze in North-Western Turkey.
The firm said they had been in the joint venture for 15 years but did not reveal what future plans they had for the business.
Olmuska-International Paper produce corrugated containers for industrial and consumer packaging segments, and offers value-added packaging solutions, such as supply chain and design services.
The business focuses mostly on fresh fruit and vegetable packaging as well as other food packaging segments and specialised industrial applications.
It also offers graphic printing on paperboard materials before they are made into finished boxes.
‘Cement leadership position’
The transaction will cement the firm’s leadership position in the local market, Tom Ryan, senior manager public relations, executive and employee communications at International Paper, told FoodProductionDaily.com.
“Currently, we are the market leader with 15% market share. This transaction compliments the DS Smith acquisition there at the end of 2010 and is a clear sign of our commitment in the region to our employees, customers and suppliers.
“Turkey is an exciting growth opportunity for International Paper. It’s the seventh largest corrugated packaging market in Europe and is set to grow at healthy levels over the coming decade. It also represents a potential growth platform to the Middle-East.”
When asked what plans International Paper had for the business, Ryan said: “Right now our focus remains on the business and on our customer base.”