USA: Buckeye Acquires Brazilian Cotton Facility
Buckeye Technologies Inc (NYSE:BKI) today announced its purchase of the cotton cellulose business of Fibra SA located in Americana, Brazil, for US $35 million. Buckeye and Fibra concurrently entered into a contract under which this plant will continue to supply cotton cellulose for Fibra's staple rayon operations in Brazil. Buckeye will assume operation of the facility effective August 1. Fibra president, Ricardo Steinbruch, stated: "This transaction is a major step forward in implementing a new concept that we have been building in our company. We plan to focus on those core activities that add value to our business and our customers' businesses." Buckeye's chairman, Robert Cannon, commented: "This is a very good arrangement for both parties. Buckeye plans to almost double the capacity of the plant to 50,000 metric tons per year, allowing it to serve new markets in addition to supplying Fibra's needs. Not only are we strategically positioned near South America's large cotton growing regions, but we gain an important business ally through our collaboration with Fibra and its affiliate, the Vicunha Group." Fibra, a leading manufacturer of artificial and synthetic fibers for the textile industry, is headquartered in the city of Americana, Brazil and controlled by the Vicunha Group. The Vicunha Group is the largest textile group in Latin America and one of the largest privately held companies in Brazil with extensive operations in the textile, mining, steel, and communications industries. Buckeye, a leading manufacturer and marketer of specialty cellulose and absorbent products, is headquartered in Memphis, Tennessee, USA. The Company currently operates facilities in the United States, Canada, Germany, and Ireland. Its products are sold worldwide to makers of consumer and industrial goods.
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