Paper Companies Restructuring
Tuesday, November 25, 2008

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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