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International Paper Creates New Specialty Papers Business

Thursday, September 11, 2003

Press release from the issuing company

STAMFORD, Conn., Sept. 10 -- International Paper announced today that the company is consolidating three existing businesses into the newly created Specialty Papers Business to serve customers more efficiently. The company's former Industrial Papers, Kraft Papers and a portion of the Converting & Specialty Papers Business will be consolidated into International Paper's new Specialty Papers Business. The business will be part of IP's Industrial Packaging Group. "This consolidation will create value for customers by providing a broader product offering and innovative solutions to our specialty papers customers," said Wayne Brafford, senior vice president -- Industrial Packaging. "Through this reorganization, we can provide customers with access to a single organization with an integrated supply chain." The Specialty Papers Business will provide a broader product offering comprised of the following product lines, which are commonly used by packaging makers as the components of consumer and industrial packaging: * Bleached and unbleached kraft papers (multiwall, converting, bag). * Bleached and unbleached supercalendered kraft papers (SCK). * Bleached and unbleached lightweight packaging and industrial papers (machine finished and machine glazed). * Base and face papers for pressure sensitive label and tape applications. * Industrial, label and hygiene release liners. * Printed and converted specialty paper products. "International Paper's Specialty Papers Business will provide converters with the paper they need to manufacture paper and packaging products people rely on every day," said Tommy Joseph, vice president Specialty Papers. "Our specialty papers are converted into products such as: pet food packaging, pressure sensitive labels, tapes, hygiene products, processed food packaging, quick service restaurant packaging, paper ream wrap, insulation, and composite cans, to name a few." Related to this transition, the company will make a strategic investment at its Roanoke Rapids, N.C. Mill to transition the No. 4 paper machine from linerboard to unbleached kraft paper. The company will also be reducing International Paper's linerboard capacity by 65,000 tons per year through the transition of the Roanoke Rapids No. 4 paper machine, which produces 300,000 tons per year of linerboard, to unbleached kraft paper. The Savannah, Ga. No. 6 paper machine, which produces 235,000 tons per year of linerboard, will start up from its idle state. This will result in a net capacity decrease of 65,000 tons per year of linerboard. Unbleached kraft paper capacity will not change, as the No. 7 kraft paper machine at the Savannah Mill will be idled as part of this transition. Tommy Joseph will serve as vice president, Specialty Papers. This new organization will report to Wayne Brafford, senior vice president, Industrial Packaging. The business will be headquartered in Memphis, Tenn.




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