GRUPO GONDI, ONE OF THE MOST IMPORTANT AND LEADING COMPANIES IN THE WORLD IN THE PAPER AND PACKING INDUSTRY, IS INVESTING APPROXIMATELY USD 300 MILLION DOLLARS TO DEVELOP, CONSTRUCT AND OPERATE A NEW PAPER MANUFACTURING FACILITY.
Mexico City, April 15th, ,2019.- Basham, Ringe y Correa, through the partner Juan Carlos Serra , and the associates Jorge Escobedo, and Ricardo Evangelista, has been actively involved and has provided legal advice to a major paper and packing manufacturer company known as Grupo Gondi, which is part of WestRock Group, one of the most important and leading companies in the world in the paper and packing industry, for a project that consists in the development, construction and operation of a paper manufacturing facility to be located in the Mexican State of Nuevo León, with an investment of approximately USD $300.00 million.
Our legal advice has included the negotiation of the entire scheme to be implemented for the development of the project including the specific roles of the involved parties and specifically of a consortium that will develop the project. It has also included analysis and implementation of the commercial and regulatory scheme for the operation of the project, as well as for the construction and development of the required infrastructure including all requirements needed from a federal, local and municipal perspective to develop, among others: (i) the power generation plant to be interconnected to the national electric grid; (ii) a water treatment plant to supply and deliver client the required volumes of industrial water for its commercial operations; (iii) the paper manufacturing facility, and (iv) the transmission lines to connect the facility to the national electric grid.
Our client´s facility is expected to have an annual production of 350,000 tons of paper and, construction of the facility is expected to begin in 2019. The Project consists in building: (i) the largest containerboard machine in México to produce lightweight recycled line board; (ii) a new paper mill for its operations; (iii) a co-generation power plant facility for the supply of electricity to the facility, (iv) an industrial water treatment facility on a site adjacent to the client´s facility, among other additional infrastructure.
The Project is considered of high relevance since Grupo Gondi and WestRock Group are of the biggest paper manufacturing companies in the world seeking to increase their presence and operations in México by developing new projects as the one referred herein which will represent important investments for México and creation of more jobs.
Other firms involved in the transaction: King & Spalding, LLP, external legal counsels of Grupo Gondi.