Displaying items by tag: Metsä Board Corporation

Metsä Board Corporation, part of Metsä Group, announced in March 2012 the start of a voluntary reindustrialization project in Alizay mill in France. The project is carried out jointly by Metsä Board, workers’ representatives and local authorities.

Negotiations regarding the divestment of the land, buildings and machinery of the Alizay mill have proceeded, but unlike discussed in certain public medias, an agreement on the divestment has not been signed. If the negotiations proceed well, it is possible that the arrangement will materialize by year end. This will be announced separately.

Metsä Board permanently closed down the Alizay site in early 2012 as part of the group’s strategic transformation from a fine paper company to a paperboard company.

Metsä Board Corporation, a part of Metsä Group, divested on 3 May 2012 a 7.3 percentage point shareholding in Metsä Fibre Oy to Japan-based Itochu Corporation for EUR 138 million. At the same time Metsäliitto Cooperative, divested 17.6 percentage points of their holding in Metsä Fibre to Itochu. Metsä Board’s parent entity Metsäliitto had exercised on 24 April 2012 its call option pursuant to an amendment to the shareholders’ agreement to purchase the UPM-Kymmene Corporation’s 11 percentage holding in Metsä Fibre.

UPM has today initiated arbitration proceedings in which it claims jointly from Metsäliitto and Metsä Board primarily EUR 58.5 million in damages and secondarily to return an EUR 58.5 million claimed unjust enrichment. The claims are based on an alleged breach of the tag-along clause specified in Metsä Fibre’s shareholder agreement signed in 2009.

Metsä Board considers UPM’s claim to be unfounded in its entirety and will not book provisions related to this claim. The claim does not have an effect on the Itochu transaction or on Metsä Board’s cooperation with Itochu and it is not based on agreements made with Itochu. 

The dispute initiated by UPM will be processed in a court of arbitration and the outcome will be announced later on.

METSÄ BOARD CORPORATION