Star's RI venture canceled

Star's RI venture canceled

AMSTERDAM (Reuters): KNP Leykam said yesterday its "China Star" joint venture with Indonesia's April group had been canceled following KNP BT's sale of the former unit KNP Leykam to Sappi Limited.

"The sale of KNP Leykam by KNP BT to Sappi Limited and the strategic reorganization of April make it inappropriate from this project to continue," KNP Leykam said.

The project originally envisaged the transfer of KNP Leykam's paper machines PM8 and PM10 from Austria to China as part of a 50-50 joint venture with Indonesia's Asia Pacific Resources International Holdings Ltd (April).

"It is this joint venture which will now not proceed," KNP Leykam said.

KNP BT finalized its sale of the KNP Leykam division to South African Sappi Ltd at the end of last year.