International Paper ( IP) entered a 50/50 joint venture agreement with Shandong Sun Paper for coated board production in Yanzhou City, Shandong Province.

International Paper's investment in the venture is expected to be around $140 million.The joint venture includes two coated paperboard machines located in Yanzhou City, as well as construction of a third coated paperboard machine, expected to be completed in late 2007.

"Expanding our coated board production in China through this powerful partnership with Sun Paper is core to our strategy for serving our global packaging customer base," the company said.

The transaction is expected to be finalized in the third quarter of 2006.
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