UPDATE 1-MeadWestvaco to invest about $480 mln in Brazil

Wed Nov 17, 2010 8:51am EST

* To expand operations in Brazilian unit

* To grow corrugated-packaging business

* Raises quarterly dividend by 9 pct

* To double capacity of Tres Barras mill

Nov 17 (Reuters) - Packaging products company MeadWestvaco Corp (MWV.N) said it would invest about $480 million to grow its corrugated-packaging business in Brazil.

MeadWestvaco said it will expand operations in Rigesa, its Brazilian unit, and develop its facility in Santa Catarina State, including the installation of a paperboard machine that will double the capacity of its Tres Barras mill.

The investment will be funded through internal and external sources, and when the mill is fully operational, the company expects to employ about 800 people.

The company, which employs more than 2,500 people in Brazil, has been in the market with Rigesa since 1953. Rigesa supplies packaging products in the food, cleaning, cosmetics, health, chemicals and electronic markets.

MeadWestvaco also raised its quarterly cash dividend by 9 percent to 25 cents.

The Richmond, Virginia-based company's shares have gained 2 percent since reporting second-quarter results in July. They closed at $25.21 on Tuesday on the New York Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Vinu Pilakkott) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.