From the Associated Press via the Winston-Salem Journal
One of the largest landowners in North Carolina could open up a huge sale of property as International Paper considers selling all or part of its approximately 637,000 acres in the state.
The Connecticut-based company this week announced reorganization plans to focus on the most profitable parts of its business. That could mean selling 6.8 million acres of forest nationwide.
It also means uncertainty in Riegelwood and Roanoke Rapids, where International Paper's paper mills are located. The Riegelwood paper mill employs 750 and the Armour lumber mill in the Columbus County town employs 235. The Roanoke Rapids mill employs 480.
There have been no decisions on where to close or scale back operations, International Paper spokesman Rick Ouellette said.
"It just means we are considering all our strategic options," he said.
The company said Tuesday it plans to focus on only two divisions _ uncoated papers, and industrial and consumer packaging. International Paper's shares dropped to a 52-week low of $29.76 this month before rising after the reorganization announcement.
The Riegelwood plant produces products for both divisions still in International Paper's plans. The reorganization is more likely to effect the Armour lumber mill, which is part of International Paper's wood-products business.
The mill's future would be reviewed with the goal of selling it or spinning it off, Ouellette said.
Conservation groups are both excited and nervous about the possibility of thousands of acres of forest hitting the market.
Scott Belan, director of donor relations with the North Carolina chapter of the Nature Conservancy, said International Paper's holdings include many areas the environmental group would be eager to see protected. He said the group has a history of working with the company to protect important ecological areas, most recently in 2002 when the conservancy paid $24 million for 38,000 acres around the Holly Sheter and Angola gamelands.
"They've been a great partner for us in North Carolina and we're looking forward to working with them again," Belan said.
International Paper executives said they hope the reorganization raises $8 billion to $10 billion in after-tax proceeds and yields savings of about $400 million over several years. The company said it hopes to wrap up its realignment in 2007.
