News

International Paper (IP) has completed the acquisition of Weyerhaeuser's containerboard, packaging and recycling business.

The merger, which was announced in March, is expected to generate IP around $400m (£204m) in annual profits within three years.

The deal includes nine containerboard mills, 72 packaging locations, 10 specialty packaging plants, four kraft bag and sack locations and 19 recycling facilities. It also involves approximately 14,300 employees.

IP chairman and chief executive John Faraci said the acquisition would "improve bottom line results and further strengthen one of our company's platform businesses".

Weyerhaeuser is looking to use much of the proceeds from the sale to pay down debt.

Yesterday (August 5) Weyerhaeuser reported a net loss of $96m for the second quarter of 2008, compared to a profit of $32m 12 months ago.

It also announced it would be cutting 1,500 jobs within the next 18 months, mostly at its headquarters near Seattle.