|International Paper Announces Permanent Paper Machine Shutdown at Franklin and Downtime at Other Company Paper Mills|
Approximately 210,000 tons of uncoated freesheet paper taken out of the company's U.S. paper mill system
MEMPHIS, Tenn., Nov. 13 /PRNewswire-FirstCall/ -- International Paper (NYSE: IP) today announced the permanent shutdown of its No. 3 uncoated freesheet paper machine at its Franklin, Va., Mill. This will result in the permanent curtailment of the company's annual paper production capacity by approximately 150,000 tons of uncoated freesheet paper and affect approximately 50 employees. The plan targets November 23 to begin the shutdown. In addition, approximately 60,000 tons of lack of order downtime will be taken out of the company's U.S. uncoated freesheet paper mills during the fourth quarter.
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"Because of the continuing decline of uncoated freesheet paper demand, we must reduce our capacity and announce this permanent machine shutdown," said Wayne Brafford, IP's senior vice president, Printing & Communications Papers. "Our company's commitment to optimize our mill operations to meet the needs of our customers made this difficult business decision necessary. The additional capacity reductions, as lack of order downtime, reflect the current economic weakness in our markets," added Brafford.
"We also understand this announcement will create uncertainty for employees, their families and the communities affected, especially in the Franklin area," said Brafford. "We will do all we can to assist them during the shutdown process and downtime period."
About International Paper
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs more than 65,000 people in more than 20 countries and serves customers worldwide. 2007 net sales were approximately $22 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.
This news release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include delays in the process of shutting the machine down and changes in market conditions which may require the company to shut the machine down at an earlier or later date. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
SOURCE International Paper