Consumables

International Paper Announces Paper Machine Shutdown

Wednesday 10. September 2008 - Today, International Paper (NYSE: IP) announced plans for an indefinite shutdown of its No. 3 paper machine at the Valliant Mill in Oklahoma as of Nov. 1. This machine produces approximately 430,000 tons annually of containerboard, used to make corrugated packaging.

“The decision to shut down this machine will enable us to match our production to our customer needs and limit our exposure to high fiber and other input costs in the area,” said Carol Roberts, senior vice president of IP’s Industrial Packaging business. “Nevertheless, this decision will impact very good, hardworking people, and we are taking steps to support them.”

Approximately 60 jobs will be impacted at the mill as a result of the machine shutdown. The company will provide severance and outplacement assistance to affected employees.

Key grades produced on the No. 3 machine will be transitioned to other mills to meet customers’ needs.

Prior to the shutdown of Valliant No. 3, International Paper’s North American containerboard production is about 11.5 million tons per year.