Displaying items by tag: Weyerhaeuser
International Paper Finalizes Purchase of Weyerhaeuser's Pulp Business
International Paper (NYSE: IP) has just announced that it has completed its acquisition of Weyerhaeuser's pulp business for approximately $2.2 billion in cash, subject to post-closing adjustments. Because the transaction is a purchase of assets, International Paper expects to realize a tax benefit with an estimated net present value of approximately $300 million. International Paper expects annual synergies of approximately $175 million by the end of 2018, which will require the need for one-time costs of approximately $85 million.
Newly Combined Business to be Called Global Cellulose Fibers
- Deal Strengthens IP's Position in Global Fluff Pulp Market
- Offers Significant Synergies, Superior R&D Capabilities and Valuable Patent Portfolio
"This transaction positions International Paper as the premier global supplier of fluff pulp and enhances our ability to generate additional cash flow," said International Paper Chairman and CEO Mark Sutton. "I want to personally welcome the talented employees of Weyerhaeuser to the International Paper family as we look forward to serving our customers around the world."
In this transaction, International Paper acquired five pulp mills and two converting facilities that produce fluff pulp, softwood pulp, and specialty pulp products for a number of consumer applications including diapers, other hygiene products, tissue, and textiles. The acquired business has approximately 1,900 employees around the world, with manufacturing operations based in Canada, Poland and the U.S. (located in Mississippi, Georgia and North Carolina).
The combined businesses will be called Global Cellulose Fibers, led by senior vice president Jean-Michel Ribieras, and reported as a separate business segment beginning with the Company's release of earnings for the fourth quarter of 2016.
About International Paper
International Paper (NYSE: IP) is a leading global producer of renewable fiber-based packaging, pulp and paper products with manufacturing operations in North America, Latin America, Europe, North Africa, Asia and Russia. We produce packaging products that enable world-wide commerce; pulp for diapers, tissue and other personal hygiene products; papers that drive communication; paper bags that carry groceries; and paper cups and food containers. We are headquartered in Memphis, Tenn., and employ roughly 55,000 colleagues located in more than 24 countries. Net sales for 2015 were $22 billion. For more information about International Paper, our products and global citizenship efforts, please visit internationalpaper.com
Certain statements in this press release may be considered 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 but are not limited to: (i) the failure to realize the expected synergies, cost-savings and other benefits from the acquisition of Weyerhaeuser's pulp business or delay in realization thereof in light of integration difficulties or other challenges; (ii) the level of our indebtedness and changes in interest rates; (iii) industry conditions, including but not limited to changes in the cost or availability of raw materials, energy and transportation costs, competition we face, cyclicality and changes in consumer preferences, demand and pricing for our products; (iv) global economic conditions and political changes, including but not limited to the impairment of financial institutions, changes in currency exchange rates, credit ratings issued by recognized credit rating organizations, the amount of our future pension funding obligation, changes in tax laws and pension and health care costs; (v) unanticipated expenditures related to the cost of compliance with existing and new environmental and other governmental regulations and to actual or potential litigation; and (vi) whether we experience a material disruption at one of our manufacturing facilities. These and 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. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. U.S. Department of Justice Concludes Review of International Paper's Acquisition of Weyerhaeuser Pulp Business
The U.S. Department of Justice has concluded its Hart-Scott-Rodino review of International Paper's (NYSE: IP) announced acquisition of Weyerhaeuser's pulp business without taking any action. Regulatory reviews in other non-U.S. jurisdictions are ongoing. Completion of the transaction is expected to occur in the fourth quarter of 2016.
On May 2, 2016, International Paper announced it had signed a definitive agreement with Weyerhaeuser to acquire its pulp business. Under terms of the agreement, IP will acquire five pulp mills and two converting facilities that produce fluff pulp, softwood pulp, and specialty pulp for a number of consumer applications including diapers, other hygiene products, tissue, and textiles.
ABOUT INTERNATIONAL PAPER
International Paper (NYSE: IP) is a leading global producer of renewable fiber-based packaging, pulp and paper products with manufacturing operations in North America, Latin America, Europe, North Africa, Asia and Russia. We produce packaging products that enable world-wide commerce; pulp for diapers, tissue and other personal hygiene products; papers that drive communication; paper bags that carry groceries; and paper cups and food containers. We are headquartered in Memphis, Tenn., and employ 53,000 colleagues located in more than 24 countries. Net sales for 2015 were $22 billion. For more information about International Paper, our products and global citizenship efforts, please visit www.internationalpaper.com
Ford and Weyerhaeuser Collaborate to Develop Automotive Applications Using Natural Fiber Materials
- Ford’s investigation into the use of tree fibers called cellulose in plastic composites has shown using the fiber in automotive applications could significantly reduce CO2 emissions and weight, while speeding processing time by as much as 40 percent
- Ford has worked with Weyerhaeuser – one of the largest forest products companies in the world – to prove out a more sustainable plastic composite material for future Ford vehicle components
- Ford already uses a variety of sustainable materials throughout its lineup, including soybean-based cushions and head restraints that save about 5 million pounds of petroleum annually
- The new Fusion uses the equivalent of about 42 recycled plastic bottles in its seat fabric and post-consumer recycled carpet in its cylinder head covers
- Ford’s entire North American lineup of vehicles contain soybean-based cushions and head restraints
- Flex has wheat straw in its plastic bins
- Kenaf fiber – derived from a plant related to cotton and okra – is used in the door bolsters of Escape
- Focus Electric uses a wood-fiber-based material in its doors and recycled plastic bottles in its seat fabric
- The new Fusion contains the equivalent of slightly more than two pairs of average-sized American blue jeans as sound-dampening material
- The equivalent of 25 recycled 20-ounce plastic bottles help make up the Escape’s carpet
Safest mills: Al-Pac, Weyerhaeuser and Northern Pulp
Alberta Pacific Forest Industries, Weyerhaeuser’s Grande Prairie site, and Northern Pulp Nova Scotia were the safest operations in Canada last year, according to Pulp & Paper Canada’s Safest Mill in Canada contest. Weyerhaeuser was the only participating mill to have zero incidents in 2011.
There was a change to the rules this year, to reflect the fact that fewer mills are reaching the 100,000 man hours per month threshold for Category A. The threshold value was lowered to 80,000 man hours per month for 2011. Domtar’s Windsor mill, which had dominated the small group of Category A mills for several years, falls to third place with a frequency rate of 1.22. Alberta Pacific Forest Industries tops Category A with six incidents and an incident rate of 1.11. Howe Sound Pulp & Paper placed second at 1.13.
Category B was won by Weyerhaeuser’s Grande Prairie mill, whose employees are to be congratulated for achieving a zero-incident year. Hinton Pulp (0.94) and Resolute Forest Products’ Alma mill (0.99) came in second and third in this category.
Sonoco Canada’s Brantford site, which had an unblemished record for seven years, had one incident in 2011, and cedes the top spot in Category C to Northern Pulp Nova Scotia.
Northern Pulp had one incident in 2011, for a frequency rate of 0.35. Slave Lake Pulp placed second with a frequency rate of 0.92, and J.D. Irving’s Lake Utopia Paper was third with 1.36.
Tips from the winning mills and complete results will be printed in the March/April issue of Pulp & Paper Canada.
Source: Pulp & Paper Canada