<B>APP Cancels Purchase of B.C. Pulp Mill</B>

Asia Pulp and Paper Co. has cancelled the purchase and sale agreement for APP’s acquisition of a 420,000 metric ton capacity northern bleached softwood kraft pulp mill in Castlegar, B.C. This past spring the company announced plans to acquire the facility for $378 million. Due to financing difficulties APP has not been able to continue with the plan.

APP currently has a pulp capacity of 2.3 million metric tons and a paper and packaging capacity of 5.7 million metric tons. It is the largest “Asian paper company outside Japan.