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MEMPHIS, Tenn., Oct. 31, 2024 /PRNewswire/ — World Paper (NYSE: IP) nowadays introduced the verdict to study strategic choices for its international cellulose fibers (GCF) industry. The verdict to discover choices for the GCF industry is in keeping with the Corporate’s technique to concentrate on sustainable packaging answers.
IP’s GCF industry creates guard, top of the range absorbent pulp for a large territory of packages like female help, incontinence and alternative private help merchandise that advertise fitness and wellness. As well as, its forte pulp serves as a sustainable uncooked subject matter worn in textiles, development fabrics, paints, coatings and extra. The GCF industry generated $2.9B in income in 2023 and has operations in 3 nations, with 8 generators and two changing amenities.
“International Paper is committed to maximizing value for our shareholders, and to that end, we have launched a comprehensive and thorough review of strategic options for our global cellulose fibers business,” mentioned World Paper Chairman and CEO Andy Silvernail.
“GCF is focused on accelerating earnings by aligning resources with our most strategic fluff pulp customers, implementing an 80/20 mindset and creating a simplified and focused portfolio. Our team is well-positioned to win with attractive customers in the growing global fluff pulp market,” mentioned Clay Ellis, Senior Vice President, World Cellulose Fibers, World Paper. “Throughout our review, we will maintain our strong customer relationships with the same high standards and close collaboration.”
World Paper has retained Morgan Stanley & Co. LLC as monetary guide to assistance overview strategic choices for the GCF industry. The overview of strategic choices is at an early level, and there may also be incorrect agreement that this overview will lead to any more or less transaction or alternative consequence. The Corporate will lend updates at the exit or condition of this topic if and when it deems additional disclosure is needed or suitable.
IP to Similar Georgetown, S.C. Pulp and Paper Mill
Moreover, the Corporate introduced the everlasting closure of its Georgetown, South Carolina mill. The mill will close ill in phases with a complete closure anticipated by way of the tip of 2024.
The Georgetown mill produces roughly 300,000 heaps of fluff pulp designed for a territory of shopper packages from child diapers to incontinence merchandise. GCF plans to secure 100% of the mill’s fluff pulp capability by way of moving manufacturing to alternative generators and extra decreasing the Corporate’s publicity to commodity pulp grades.
The mill additionally produces uncoated freesheet papers that it sells to Sylvamo (NYSE: SLVM) pursuant to a strategic commitment, which IP and Sylvamo have mutually correct to stop as of December 31, 2024.
“This decision is especially difficult because of the impact on hard-working employees, their families and the surrounding communities,” mentioned Bernie Chascin, Georgetown mill supervisor, World Paper.
In general, 526 hourly staff and 148 salaried staff might be impacted. All staff might be presented severance advantages, outplacement services and products and get right of entry to to psychological fitness assets.
About World Paper
World Paper (NYSE: IP) is a world manufacturer of sustainable packaging, pulp and alternative fiber-based merchandise, and one of the most global’s biggest recyclers. Headquartered in Memphis, Tenn., we make use of roughly 39,000 colleagues globally who’re dedicated to making what’s nearest. We lend shoppers international, with production operations in North The usa, Europe, Latin The usa and North Africa. Web gross sales for 2023 had been $18.9 billion. Supplementary knowledge may also be discovered by way of visiting internationalpaper.com.
Ahead-Taking a look Statements
This press reduce comprises forward-looking statements inside the that means of the Non-public Securities Litigation Reform Occupation of 1995, as amended. Those forward-looking statements replicate control’s tide perspectives and are matter to dangers and uncertainties that might motive fresh effects and the timing of occasions to fluctuate materially from the ones expressed or implied in those forward-looking statements. Those dangers and uncertainties come with the dangers that this overview of strategic choices is not going to lead to any transaction or alternative desired consequence; that we will be able to be not able to understand the expected advantages of this overview of strategic choices; and that we will be able to be not able to understand the expected advantages from our closure of the Georgetown, South Carolina pulp mill. Those forward-looking statements also are matter to the dangers and uncertainties contained within the Corporate’s Annual Record on Method 10-Ok for the fiscal date ended December 31, 2023, filed with the U.S. Securities and Trade Fee (“SEC”) on February 16, 2024, the Corporate’s Quarterly Record on Method 10-Q for the 3 months ended June 30, 2024 filed with the SEC on July 26, 2024, and next reviews filed with the SEC. As well as, alternative dangers and uncertainties no longer right now recognized to the Corporate or that we recently imagine to be immaterial may have an effect on the accuracy of any forward-looking statements. The Corporate undertakes incorrect legal responsibility to publicly replace any forward-looking statements contained on this press reduce, whether or not because of fresh knowledge, month occasions or adjustments in expectancies.
SOURCE World Paper
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