International Paper has entered a definitive agreement to sell its corrugated packaging business in China and Southeast Asia to Xiamen Bridge Hexing Equity Investment Partnership Enterprise.
International Paper's corrugated packaging unit in Asia has 18 facilities and employs 3,000 people.
Under the deal, International Paper will receive CNY1bn ($150m).
This is subject to post-closing adjustments and other payments, including the buyer's assumption of liability for loans of $50m to be paid to International Paper within six months of closing the sale.
The deal is slated to be completed in the next few months, following regulatory approvals.
International Paper is a packaging and paper firm with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa.
Its businesses include industrial and consumer packaging, as well as uncoated papers and pulp.
Based in Memphis, the company employs 55,000 people and has a presence in more than 24 countries. Its net sales for 2015 were $22bn.
The company's executives earlier stated there was no benefit in running production in China as raw materials are mostly imported, reported The Wall Street Journal.
Image: International Paper's corrugated packaging unit in Asia has 18 facilities. Photo: courtesy of nuttakit / FreeDigitalPhotos.net.