Weyerhaeuser is exploring strategic alternatives for its cellulose fibers business that produces liquid packaging board, absorbent pulp and papergrade pulp.
The company is considering various alternatives such as sale or spin-off of the business or continuing to hold and operate the business.
Weyerhaeuser operates five pulp mills, two modified fiber mills, one liquid packaging board facility, and one publishing papers joint-venture facility, as part of its cellulose fibers business.
Weyerhaeuser president and CEO Doyle R. Simons said: "We have consistently improved the performance of this business while continuing to meet the needs of our worldwide customers.
"We believe now is the right time to evaluate all options to ensure the best long-term results for this business and at the same time create the most value for our shareholders by further focusing our portfolio."
The company, however, said that there can be no assurance that its evaluation process will result in any transaction or that any transaction, if pursued, will be consummated.
Meanwhile, Weyerhaeuser has reached a definitive agreement to merge with Plum Creek to create a combined company with an anticipated equity value of $23bn.
Upon completion of the merger, Weyerhaeuser and Plum Creek will own 65% and 35% in the combined company respectively.
Plum Creek, with more than 6 million acres of timberlands in 19 states, operates wood products mills in the Northwest US.
