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More than 400,000 tons of annual freesheet production
and even more pulp tonnage will be taken offline in 2009. Last week, Boise
Inc. and International Paper announced restructuring plans resulting
from declining paper demand. Boise said it will permanently halt pulp production
at its St. Helens, Ore. mill and will reduce annual freesheet paper production
capacity by 200,000 tons. The moves allow Boise to increase operating margins,
better match production levels to demand and discontinue production of its least
profitable papers.
IP said it has begun the permanent shutdown of its No. 3 uncoated freesheet
paper machine at its mill in Franklin, Va.. This will result in the permanent
curtailment of the company's annual paper production capacity by approximately
150,000 tons of uncoated freesheet. 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. IP also announced the
indefinite closure of its Louisiana mill in Bastrop, reducing the company's
annual pulp production capacity by approximately 450,000 tons.
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