International Paper‘s wood product operations could be sold as part of a wide-ranging restructuring plan announced by the company.
The firm is looking to sell billions of dollars worth of businesses, close mills, offload millions of acres of forestland and possibly relocate its headquarters.
International Paper says it wants to concentrate on its two key businesses – uncoated papers and industrial/consumer packaging.
The company’s wood products division includes 22 lumber mills, five panel mills and two timber pole facilities. It is one of the world’s leading suppliers of southern yellow pine and also sells plywood and engineered timber.
International Paper, which expects to complete evaluation of its operations by the first quarter of 2006, is also looking at options for its 50.5% stake in New Zealand forestry company Carter Holt Harvey.
The company believes it can earn US$8-10bn from divestments. About half would be used to reduce debt, while up to 30% could be returned to shareholders.
