Trade Resources Industry Views International Paper Co. Plans to Close an Alabama Mill as The Result of Weakening Demand

International Paper Co. Plans to Close an Alabama Mill as The Result of Weakening Demand

International Paper Co. (IP) plans to close an Alabama mill as the result of weakening demand in the U.S. for paper used in products such as forms, envelopes and printers, a move that will affect 1,100 employees.

Demand for uncoated freesheet in North America has been in decline for more than a decade, with the pace of the decline increasing recently as consumers turn to electronic alternatives such as online publications and electronic billing and filing, the company said.

The paper-and-pulp company expects to record asset write-downs and accelerated depreciation charges of $550 million and restructuring-related charges of $125 million in 2013 and 2014.

International Paper has a global workforce of roughly 70,000 people.

The company in July reported that its second-quarter profit rose 93% as the company reported higher sales amid stronger volumes and higher margins.

Shares were down 35 cents at $48.92 in early trading.

Source: http://news.chemnet.com/Chemical-News/detail-2153725.html
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International Paper to Close Alabama Mill Amid Weak Paper Demand
Topics: Office Supplies