Bio-Pappel Announces 100% Ownership of Us Corrugated, Plans New Corrugator in Dallas & ......

EXPAND INVESTMENTS IN THE US
Following its international growth plan, Bio PAPPEL announced that it acquired in June the shares of its US partner, who owned 45% of the packaging company US Corrugated Inc., to incorporate it 100% into its American subsidiary McKINLEY Paper Company. With this acquisition McKINLEY will achieve an efficient integration and wide geographic coverage by operating today 8 modern industrial paper and packaging plants in the States of California, Washington, New Mexico, Georgia, Indiana and Baja California, Mex. Also, it will soon operate a new packaging plant in Dallas, Texas, currently under construction.

T-MEC COMPANY
Miguel Rincón, Chairman of the Board, pointed out that these transactions are part of the ongoing strategy to consolidate Bio PAPPEL as a T-MEC paper company with an efficient integration and broad presence in North America, the world's largest trading block, aimed at having half of its operations in Mexico and the remainder in the United States in the near future.

MEXICO
Rincón stated that the Bio PAPPEL Board of Directors ratifies its enormous confidence in Mexico and its promising future as a strategic member of the outstanding T-MEC agreement, as its subsidiary TITAN is currently making a significant investment in the construction of a new industrial plant in Tizayuca, Hidalgo and next year it will build its 22nd plant in Nuevo León, thus consolidating 85 years as the historical leader of the packaging sector in Mexico since its visionary foundation by Don Eugenio Garza Sada as part of the Monterrey Group. TITÁN was acquired by Bio PAPPEL from Grupo Alfa and Stone Container Corporation in 1993, since then it has expanded fourfold its production capacity.

ABOUT BIO PAPPEL
Bio Pappel is the largest producer of sustainable paper and paper products in Mexico and Latin America. It has a production capacity of 3.6 million tons per year. It is a company that is distinguished by producing paper through its circular sustainability model called Bosque Urbano, which is the recycling of paper on a large scale. It operates through 3 business groups Titán, Scribe and McKinley and has presence in Mexico, U.S. and South America. Bio Pappel is market leader in it sustainable product lines made up of packaging paper, corrugated cardboard packaging, paper sacks, recycled bond paper (chlorine free) in large rolls, cut paper for printers and photocopiers, newsprint and notebooks.