International Paper to Cease Pulping Operations at Louisiana Mill After $10 Million Conversion

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Researched by Industrial Info Resources (Sugar Land, Texas)--Forest products giant International Paper (NYSE:IP) (Memphis, Tennessee) has announced plans to immediately idle pulping operations at a mill in Bastrop, Louisiana. The company cited declining demand for pulp from international markets coupled with a weak global economy as reasons for the mill closure. The Bastrop mill accounted for 450,000 tons of the company's annual pulp production and employed 550 workers.

This past fall, the company spent $10 million to convert the mill from an uncoated free-sheet mill to 100% market southern bleached softwood kraft and fluff pulp production. Before the conversion, the mill was being evaluated for closure as part of a company-wide transformation plan. However, leading up to the end of 2007, demand for softwood pulp was strong and prices were on an upswing for more than two years.

Shares of International Paper at the end of trading on November 25 closed at $12.14, down from a 52-week high of $34.75.

In Louisiana, International Paper's operations include an unbleached kraft linerboard mill in Pineville, a white-top linerboard and corrugating medium mill in Mansfield and a kraft linerboard mill in Campti that was part of a recent acquisition of the Weyerhaeuser (NYSE:WY) (Federal Way, Washington) containerboard division.

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