International Paper Announces Repurposing of its Franklin, VA Mill

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May 17, 2011, 11:00 ET

MEMPHIS, Tenn., May 17, 2011 /PRNewswire/ -- International Paper (NYSE: IP) today announced plans to repurpose a portion of its closed Franklin, Va. Mill as a fluff pulp mill capable of annually producing up to 270,000 metric tons of high quality fluff pulp for the global market. With an investment of $83 million, repurposing the Franklin Mill for the production of fluff pulp will create approximately 200 jobs.

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"IP is currently the third largest global supplier of fluff pulp and this investment gives us greater participation in a growing market," said Mark Sutton, International Paper Senior Vice-President Printing and Communications Papers the Americas. "IP is a leader in the use of renewable energy. The Franklin fluff pulp facility will be 89% energy self-sufficient, utilizing power generated from carbon-neutral biomass on-site. The capability of producing energy from renewable biomass resources makes the remaining portions of the Franklin Mill site an ideal location for other partners looking for on-site green energy options." IP continues to actively evaluate additional repurposing options for the Franklin site with third party partners. International Paper's decision to permanently shut down the Franklin Mill for uncoated freesheet (UFS) production remains unchanged.

A number of factors influenced IP's decision to locate a fluff pulp mill in Franklin, including: a skilled local workforce; the condition of the mill's current assets; a wide range of transportation options; and the availability of US southern pine in the region. The unique fiber length and absorption properties of this species makes it ideal for producing high quality fluff pulp.

"With roughly ninety percent of the world's fluff pulp made from US southern pine, this is a great opportunity to use a distinctively American material to produce a globally competitive product," Sutton commented.

Fluff pulp is used in a variety of absorbent products (baby diapers, adult incontinence products, feminine hygiene products, etc.) and in airlaid products such as cleaning and baby wipes.

Repurposing of the Franklin Mill for the production of fluff pulp will begin immediately, with start-up targeted for mid-year 2012.

This press release contains 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 relate to: (i) increases in interest rates; (ii) 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 its products; (iii) 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; (iv) unanticipated expenditures related to the cost of compliance with existing and new environmental and other governmental regulations and to actual or potential litigation; and (v) whether we experience a material disruption at one of our manufacturing facilities and risks inherent in conducting business through a joint venture. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. 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.

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs about 59,500 people in more than 24 countries and serves customers worldwide. 2010 net sales were more than $25 billion. For more information about International Paper, its products and stewardship efforts, visit www.internationalpaper.com.