International Paper Mulls Divestitures, Including Catalog Paper Biz

International Paper will focus on its uncoated papers and industrial and consumer packaging operations, and is exploring options for other parts of its portfolio, including its catalog, insert and magazine division.

Uncoated papers and industrial and consumer packaging make up more than 70% of the company’s sales. Within the businesses being evaluated, Coated and Supercalendared Papers, which produce the catalogs and inserts, generated $1.6 billion in 2004, and employ 3,000 people within the United States and 725 in Brazil. The operations additionally include a sawmill and more than 123,000 acres of pine forestland, both of which are located in Brazil.

The other businesses International Paper is evaluating include: A majority stake in Carter Holt Harvey, a forest products firm; its Beverage Packaging unit; Kraft Papers, which produces bags and sacks, dunnage and other specialty grade papers; Arizona Chemical, a pine-based chemical manufacturer; its wood products business and all or part of the 6. 8 million acres of U.S. forestland.