Merger to create world's largest paper producer

The world's biggest graphic paper producer is set to be created by the merger of UPM-Kymmene of Finland and Champion International of the US. The new group, to be called Champion International, will have annual sales of $13.2 bn and will be placed behind International Paper and Ahead of Weyerhauser among the top three forest products group. The move makes a group with stronger positions in all graphic paper sector in contrast to the trend of restructuring to focus on core markets elsewhere in the industry.