LONDON — Rexam plc has agreed to sell its release films and papers operations to Lohja Group of Finland for around 85 million ($122 million).
The disposal includes Rexam Release Inc. of Bedford Park, Pa., which makes silicone-coated release films and papers at plants in West Chicago, Ill.; Eden, N.C.; and Iowa City, Iowa. It also includes Rexam Release BV of Apeldoorn, the Netherlands, and Rexam ReleaseTaiwan of Taoyuan, Taiwan.
The Rexam Release businesses, part of London-based Rexam's Coated Films and Papers Division, reported 1999 profit of 10 million ($14 million) on sales of 111 million ($160 million).
Lohja Group of Lohja, Finland, is part of one of the world's biggest forest products enterprises, UPM-Kymmene Group in Helsinki, Finland. UPM-Kymmene has annual sales of about $7.2 billion.
Lohja specializes in silicone release materials and employs 860 at plants in Finland, Britain and the United States. In a news release, the company said the Rexam deal fits with its strategy of expanding its product range and market position, especially in the United States.
For Rexam, the sale continues the divestment of its coated films and papers sector. Combined with the proceeds from the sale of Rexam's U.S. film-metalizing business earlier this year, Rexam has realized 112 million ($161 million) from the divestment program, said Rexam Chief Executive Officer Rolf Borjesson.
Rexam sold its metalizing plants in Greenfield, Ind., and Morristown, Tenn., to Vacumet Corp. of Wayne, N.J., for $44 million.
Other businesses still in the division, based in Charlotte, N.C., include:
Rexam Image Products, which includes precision coated imaging films and papers plants in South Hadley, Mass., and Portland, Ore., a paper products plant in Wuxi, China, and coating and laminating units in North and South Carolina, England and Wales.
Rexam DSI, a decorative color coating and converting business with plants in Johnston, R.I., and Reading, Pa., and paper mills in Brownville, N.Y., and West Springfield, Mass.
Rexam DSI Redbridge Ltd., a Bolton, England-based color coating and converting operation.
Meanwhile, UPM-Kymmene recently sold its polyethylene film and sack business to Rheinische Kunststoffwerke GmbH of Worms, Germany. The unit, with plants in Pori, Finland, and Ville-le-Marclet, France, reported 1999 sales of 74 million euros ($70 million), according to UPM-Kymmene.
UPM-Kymmene still makes bags for intermediate bulk containers.