Asia Pulp & Paper Group (APP) acquired PT OKI Pulp & Paper Mills (OKI) in 2013 as part of our expansion plan to increase our production capacity responsibly, which is essential for us to continue meeting growing market demands and further strengthen Indonesia's contribution to global trade. The initial production license for the OKI mill, which was issued by the Capital Investment Coordination Agency (BKPM) and accompanied by an approved Environment Impact Analysis license, was granted for the production of 2 million tons of pulp annually. The mill will commence production this year at low level and will gradually increase subject to demand and the availability of raw materials. Pulp production and any future increase in production will be subject to the availability of raw materials from our suppliers. The design capacity of the mill is 2.8 million tons per year.
Canfor Corporation (TSX:CFP), further to the Company’s news release dated November 15, 2018, announces that it has completed the purchase of 70% of the Vida Group (“VIDA”) of Sweden for a purchase price of 3,990 million Swedish Krona (approximately CAD$580 million).
“We are excited to welcome the VIDA team to Canfor and we are looking forward to working with VIDA to develop our business on a global scale,” said Don Kayne, President and Chief Executive Officer of Canfor. “We respect VIDA’s team, the quality of the wood products they produce, their strong customer relationships, and most importantly the value of the VIDA brand worldwide.”