Ahlstrom, Sonoco to build European core/tube JV

Sonoco-Alcore is the new joint venture formed by Finland-based Ahlstrom Corp. and Sonoco, Hartsville, SC, to manufacture paper-based cores, tubes and coreboard in Europe.

Ahlstrom will hold a 35.5 percent share and Sonoco a 64.5 percent shares in the new entity. With about 1,800 employees, Sonoco-Alcore has net sales of approximately $360 million, being the largest European producer of cores and tubes.

By combining Ahlstrom's presence in the Nordic markets with Sonoco's well-established position in the Central and Southern Europe, the JV will be able to further improve its ability to serve customers, the companies say. It will also have a good position in the Eastern European markets, including Turkey and Russia. Additionally, Ahlstrom's focus on paper-mill cores complements Sonoco's traditional strength in cores and tubes for textile and film industries. While the European market for cores, tubes and coreboard is suffering from overcapacity, the JV allows the partners to achieve optimal production across Europe and increases their cost-competitiveness. Ahlstrom will contribute 15 tube and core plants to Sonoco-Alcore. Sonoco will contribute JV-ownership positions in 25 tubes and cores plants as well as six paper mills to Sonoco-Alcore.

The CEO of the new business will be James A. Harrell, the current division vp of Sonoco Industrial Products/Paper, Europe. Sonoco-Alcore will be headquartered in Brussels, Belgium.