Federal Way, WA, October 29--Weyerhaeuser said it has acquired a two-thirds ownership in Aracruz Produtos de Madeira S.A., a subsidiary of Aracruz Cellulose S.A. Terms were not disclosed.
APM operates a hardwood sawmill in the Bahia region of Brazil. The joint venture will produce Lyptus lumber to be used in furniture, flooring, cabinetry and other appearance applications. Lyptus comes from a Eucalyptus hybrid that is grown on plantations. One-third of the area is kept in native vegetation to help maintain elements of the natural ecosystem.
"Our experience in Australia, New Zealand and Uruguay has shown that the Southern Hemisphere contains ideal operating environments for us," said Steven R. Rogel, Weyerhaeuser chairman, president and chief executive officer. "Expanding into Brazil builds on this experience and enhances our ability to serve global customers and to meet the growing needs of the Southern Hemisphere."
Weyerhaeuser currently has limited operations in South America and other regions in the Southern Hemisphere. In South America, Weyerhaeuser manages over 315,000 acres (127,500 hectares) of forestland in Uruguay. Weyerhaeuser also owns or manages forestland and manufacturing operations in Australia and New Zealand.
In North America, Weyerhaeuser operates 13 hardwood mills with a total capacity to produce 452 million board feet annually.
