STAMFORD, Conn., Jan. 7 -- International Paper today announced that as part of on-going optimization efforts, the company's Industrial Packaging Group will eliminate 350 jobs and reduce its containerboard capacity by 100,000 tons. The Oswego, N.Y., containerboard mill will be shut down by the end of January 2002, eliminating 102 jobs and 100,000 tons of linerboard, medium and kraft papers capacity. All of these tons will be transferred to other company locations within the Industrial Packaging mill system. In addition, 250 jobs will be eliminated across the other mills as processes are being modified to take advantage of new technologies and facility rationalizations. The majority of those reductions will occur at the Savannah, Ga., mill, where 150 people will be affected by the reconfiguration of facility assets. The 350 jobs represent a 10 percent reduction in the mill workforce of the Industrial Packaging Group, while maintaining current production levels. All reductions should be completed in 2002. "The evaluation of our production capacity versus our long-term customer needs is an on-going process, as evidenced by the closure of our Camden mill and the shutdowns of machines 2, 4 and 6 at Savannah last year,'' said Dennis Colley, vice-president, Industrial Packaging. "As Oswego closes, IP's customer needs will be met by other larger facilities within our multi-mill system that have unused capacity,'' Colley added. "Shifting production to our more efficient mills will generate a better return for International Paper shareholders.''