International Paper expected to close box plants

IP chief financial officer Tim Nicholls told Reuters Paper Summit yesterday (21 August) that the firm would be in a position next year to say where some of the “box plant rationalisations” might take place.

He indicated that the first phase of reductions was likely to remove 10 to 13 box plants from the firm’s manufacturing base.

Memphis, Tennessee-based IP has only recently completed the $6bn (£3bn) acquisition of Weyerhaeuser’s containerboard packaging and recycling business, which made IP the largest North American containerboard producer.

Finnish paper producers Stora Enso and M-real both told Reuters that they were prepared for a planned increase in Russian wood export duties.

Stora Enso chief executive Jouko Karvinen said the firm had cut its Russian wood imports by 40% and was prepared if Russia raised lumber export duties to €50 a cubic metre by 2009, effectively doubling the cost of wood.

M-real chief executive Mikko Helander said his firm, in close co-operation with Finnish forestry group Metsaliitto, was also gradually reducing its consumption of Russian wood.

He added that the Russian tax, if implemented, would pose a challenge to all Finnish and Swedish paper and forest product companies.

Nearly 10% of M-real’s wood supply comes from Russia.

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