SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16
OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2005
Durango Corporation
(f/k/a Grupo Industrial Durango, S.A. de C.V.)
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(Translation of registrant's name into English)
Torre Corporativa Durango, Potasio 150, Cuidad Industrial,
Durango, Durango, Mexico
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F. Form 20-F [x] Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934. Yes No [x]
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-_____________.
CORPORACION DURANGO, S.A. DE C.V.
* Concludes program to divest of non strategic assets
* Strengthens financial structure
* Highly focused on paper sector
Durango, Durango, Mexico, June 15, 2005 - Corporacion Durango, S.A. de C.V.,
the largest papermaker in Mexico, announced today, through its subsidiary
Ponderosa Industrial de Mexico, S.A. de C.V., that it successfully closed
on the divestiture of a particleboard plant, located in the State of Chihuahua.
With this transaction, Corporacion Durango concludes its program to divest non
strategic assets, particularly those with minimal impact to the overall
business and strategic vision. This permits the Company to reinvest in its
core paper business where there is better value and growth potential.
The divested operation was not a central business for Corporacion Durango,
the paper industry nor its products. Sales from the business only represented
2.5% of the Company's total sales.
Corporacion Durango is one of the leading industrial groups in Mexico and is
the largest paper and container maker nationwide.
Special Note Regarding Forward-Looking Statements
This press release contains statements that are
forward-looking within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking
statements are only predictions and are not guarantees
of future performance. Investors are cautioned that
any such forward-looking statements are and will be,
as the case may be, subject to many risks, uncertainties
and factors relating to the operations and business
environments of Corporacion Durango and its subsidiaries
that may cause the actual results of the companies to
be materially different from any future results expressed
or implied in such forward-looking statements.
Factors that could cause actual results to differ
materially from these forward-looking statements include,
but are not limited to, the following: the ability of
Corporacion Durango and its subsidiaries to continue as
going concerns; the success of Corporacion Durango to
negotiate a restructuring with its creditors; their
ability to obtain and maintain normal terms with vendors
and service providers; their ability to maintain
contracts that are critical to their operations; their
ability to fund and execute their business plan; their
ability to attract, motivate and/or retain key executives
and associates; their ability to attract and retain
customers; general economic, market, or business
conditions; the opportunities (or lack thereof) that
may be presented to and pursued by the Company and
its subsidiaries; the availability of raw materials
used by the Company and its subsidiaries; competitive
actions by other companies; changes in laws or
regulations, and other factors, many of which are
beyond the control of the Company and its subsidiaries.
Additionally, other factors should be considered
in connection with any Forward Looking Statements,
including other risks and uncertainties set forth
from time to time in Corporacion Durangos reports
filed with the United States Securities and
Exchange Commission. Although Corporacion Durango
believes that the expectations and assumptions
reflected in the forward-looking statements are
reasonable based on information currently available
to its management, Corporacion Durango cannot guarantee
future results or events. Corporacion Durango expressly
disclaims a duty to update any of the forward-looking statement.
CONTACTS
Corporacion Durango, S.A. de C.V.
Mayela R. Velasco
+52 (618) 829 1008
mrinconv@corpdgo.com.mx
Miguel Antonio R.
+52 (618) 829 1070
rinconma@corpdgo.com.mx
The Global Consulting Group
Kevin Kirkeby
(646) 284-9416
kkirkeby@hfgcg.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized. CORPORACION DURANGO, S.A. DE C.V.
Date: July 15, 2005 By /s/ Mayela Rincon de Velasco
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Name: Mayela Rincon de Velasco
Title: Chief Financial Officer