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MWV Acquires Controlling Interest in Company and Will Bring Value-Added Packaging to Local Indian Farmers by Improving Preservation of Produce during Transport
RICHMOND, VA (October 23, 2008) — MeadWestvaco Corp. (NYSE: MWV) today announced it has formed a joint venture with India-based corrugated box manufacturer Wadco Packaging Pvt. Ltd. by purchasing a 51 percent equity stake in the company. The MWV Wadco joint venture will extend the proven corrugated packaging design, manufacturing and technology capabilities of Wadco and MWV to Indiaís local fresh produce market, where there is a 40 percent value loss of the produce before it reaches the market due to inefficient post-harvest practices, processing and handling. The joint venture, a first of its kind in India, will help eliminate waste and strengthen supply chain efficiency by protecting products during transport to the local Indian marketplace.
"Wadcoís manufacturing capabilities and on-the-ground expertise combined with MWVís advanced packaging technology will provide solutions that meet the business challenges of the Indian marketplace," said Bruce Thomas, senior vice president, Global Market Strategy and Emerging Markets, MWV. "This transaction supports our overall strategy for growth in emerging markets and is an important step in enabling us to better address local needs while building our presence in the fast-growing Indian market."
Under the agreement, MWV will oversee Wadco operations and Pankaj Wadhwa, current owner of Wadco, will continue to run the company as managing director. Wadco will begin manufacturing MWVís rigid, humidity-resistant agri-produce corrugated packaging, and apply it to the Indian produce market as well as the other markets it currently serves, including consumer goods, household appliances and pharmaceuticals. The new business model will build on and adapt MWVís packaging expertise, resulting in a broader product portfolio, more value chain experience and cutting edge design, materials, equipment and technology.
"Our packaging solutions have added significant value in Brazil, and we look forward to bringing MWVís and Wadcoís strengths together to serve the Indian marketplace," said Bob Feeser, president of MWV Paperboard Operations. "In addition to produce protection, our packaging is designed to provide an appealing point-of-sale display, demonstrating the multiple benefits of the solutionís superior design and technology."
ìWadcoís business has grown tremendously,î said Wadhwa. ìThe demand for value-added corrugated packaging in India is expanding, and our partnership with MWV will take our business to even greater heights as we collaborate on new capabilities that allow us to meet the growing needs of our customers. MWVís strong history, reputation and global experience make them an ideal partner.î
About MWV
MeadWestvaco Corporation (NYSE: MWV), provides packaging solutions to many of the worldís mostadmired brands in the healthcare, personal and beauty care, food, beverage, media and entertainment, and home and garden industries. The company's businesses include Consumer & Office Products, Specialty Chemicals, and the Community Development and Land Management Group, which sustainably manages the companyís land holdings to support its operations, and to provide for conservation, recreation and development opportunities. With 23,000 employees worldwide, MWV operates in 30 countries and serves customers in more than 100 nations. MWV manages all of its forestlands in accordance with internationally recognized forest certification standards, and has been named to the Dow Jones Sustainability World Index for the fifth consecutive year. For more information, please visit www.mwv.com.
Forward-looking Statements
Certain statements in this document and elsewhere by management of the company that are neither reported financial results nor other historical information are ìforward-looking statementsî within the meaning of the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, the business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of each company, or industry results, to differ materially from those expressed or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties, and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to, events or circumstances which affect the ability of MeadWestvaco to realize improvements in operating earnings from the companyís ongoing cost reduction initiatives; the ability of MeadWestvaco to close announced and pending transactions, including divestitures; the reorganization of the companyís packaging business units; competitive pricing for the companyís products; changes in raw materials pricing; energy and other costs; fluctuations in demand and changes in production capacities; changes to economic growth in the United States and international economies; government policies and regulations, including, but not limited to those affecting the environment and the tobacco industry; the companyís continued ability to reach agreement with its unionized employees on collective bargaining agreements; the companyís ability to execute its plans to divest or otherwise realize the greater value associated with its land holdings; adverse results in current or future litigation; currency movements; continued volatility and further deterioration of the capital markets; and other risk factors discussed in the companyís Annual Report on Form 10-K for the year ended December 31, 2007, and in other filings made from time to time with the SEC. MeadWestvaco undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Investors are advised, however, to consult any further disclosures made on related subjects in the companyís reports filed with the SEC.
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