International Paper

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This article is about the paper company. For ISO paper sizes, see ISO 216.
International Paper Company
Type Public
Traded as NYSEIP
S&P 500 Component
Industry Pulp and paper
Founded 1898; 116 years ago (1898)
Corinth, New York, United States
Headquarters Memphis, Tennessee, United States
Area served Worldwide
Key people John V. Faraci, Chairman and Chief Executive Officer
Revenue Increase US$ 26.034 billion (2011)[1]
Operating income Increase US$ 2.216 billion(2011)[1]
Net income Decrease US$ 1.341 billion (2011)[1]
Total assets Increase US$ 26.993 billion (2011)[1]
Total equity Decrease US$ 6.960 billion (2011)[1]
Employees 61,500 (2011)[1]
Website internationalpaper.com

International Paper Company (NYSEIP) is an American pulp and paper company, the largest such company in the world.[2] It has approximately 61,500 employees, and it is headquartered in Memphis, Tennessee.[1][3]

History[edit]

One of the 18 original founding mills of International Paper c. 1908, built in 1888 as the Otis Falls Pulp & Paper Company in Chisholm, Maine.

The company was incorporated January 31, 1898, upon the merger of 18 pulp and paper mills in the northeastern United States. Its founders and first two presidents were William Augustus Russell, who died suddenly in January 1899, and Hugh J. Chisholm.[4] The newly formed company supplied 60 percent of all newsprint in the country.[citation needed]

Hudson River Mill[edit]

The Hudson River Mill in Corinth, New York, where the Sacandaga River joins the Hudson River, was a major pioneer in the development of the modern paper industry in the late 19th century.[5][6] The first wood-based paper (newsprint) mill in New York, it was built by Albrecht Pagenstecher in 1869.[7]

In the early 20th century, the Hudson River Mill was one of the company's largest plants and served both as its principal office, and a place where paper workers helped shape the direction of the industry's early labor movement.

After World War II, Hudson River Mill workers developed and perfected the production of coated papers for the company. Shifting economic forces resulted in the mill's closure in November 2002.[8][9] The historic mill was slated for demolition in 2011.[10]

Mill workers' strike[edit]

In 1987, the company's paper mill workers went on strike at a number of its U.S. plants.

Acquisitions[edit]

1986–2000[edit]

In 1986, the company acquired the Hammermill Paper Company, founded in 1898, which managed eleven papermills nationwide, and had its corporate offices based in Erie, PA ; in 1988, the Masonite Corporation; and in 1989, the German paper company Zanders Feinpapiere AG and the French paper manufacturer Aussedat Rey. In 1996, it purchased Federal Paper Board.[11] In 1999, the company purchased Union Camp Corporation, and in 2000 Champion International Paper. Additionally, it owns shares in the Chilean company Copec.[citation needed]

2011[edit]

Andhra Pradesh Paper Mills Rajahmundry, which is now an International Paper company, is one of the biggest integrated paper and pulp manufacturing centers in India. The company produces writing, printing, and copier papers for foreign and domestic markets. APPM's production facilities are two mills in Rajahmundry and Kadiam with a total production capacity of 240,000 TPA.[clarification needed] The company is becoming a driving force in sustainability in the paper manufacturing arena through focused social and community programs, including pioneering work in raw material generation through social farm forestry. International Paper owns a majority interest in APPM, and the remaining shares are publicly traded on the Bombay and National Stock Exchange of India (APPAPER).

Restructuring, 2005–2006[edit]

In 2005 and 2006, the company undertook a significant restructuring, selling over 6,000,000 acres (24,000 km2) of forestland in the U.S., along with its coated paper, kraft paper, wood products, and beverage packaging businesses, as well as subsidiaries Arizona Chemical and New Zealand-based Carter Holt Harvey. The coated paper business (four mills in Maine, Michigan and Minnesota) were sold to Apollo Management and now operate as Verso Paper. The kraft paper business (composed of a kraft paper mill in Roanoke Rapids, North Carolina and a dunnage bag plant in Fordyce, Arkansas) was sold to Kapstone Paper and Packaging and operates as Kapstone Kraft Paper.[12]

The beverage packaging business, now called Evergreen Packaging, was purchased by Carter Holt Harvey, following the purchase of CHH by Graeme Hart. The company sold its wood products division to West Fraser Timber, based in Vancouver, British Columbia. This included 13 sawmills, making West Fraser the second-largest producer of lumber in North America, after Weyerhaeuser Company.

Challenges of an electronic world[edit]

Under pressure from budget sequestration in 2013, the Federal government of the United States (IP's largest customer) has moved from physical checks to cheaper electronic transactions.

John Runyan, former head of federal government relations for IP, has become executive director of Consumers for Paper Options, a paper industry funded group that advocates for the use of paper documents for clients of the Federal government who are Internet challenged.[13]

[edit]

The company's logo was designed by American graphic designer Lester Beall in 1960.[14]

Products and corporate structure[edit]

One of the old mills in the former "mill town" of Berlin, New Hampshire, owned by the International Paper, c. 1912.
Pulp and converting paper mill, located in Georgetown, South Carolina.
Factory in Kwidzyn, Poland, at night

The company is the largest producer of plastic lids and paper cups, manufacturing for the fast-food giants McDonald's, Wendy's, Subway and coffee giant Starbucks. Its wood products division was sold in 2007 to West Fraser Timber Co. Ltd., a company headquartered in Vancouver, British Columbia. The company produces printer and copier paper, envelopes, corrugated packaging and shipping containers, consumer packaging for cosmetics, home entertainment and other retail markets, and food service packaging. It also owns xpedx, a large North American distribution and logistics company.

The company is a former Dow Jones Industrial Average component, included in the index from July 3, 1956, to April 7, 2004. It was one of three components to be dropped in the 2004 change, together with AT&T Corporation and Eastman Kodak.

Beginning February 1, 2007, the sale of the beverage-packaging division was completed as New Zealand billionaire Graeme Hart won the bid with purchase price of nearly $800 million. The division now operates under the Evergreen label.

On March 17, 2007, the company announced it was buying the containerboard unit of Weyerhaeuser for $6 billion in cash.

In October 2007, it formed a joint venture with Ilim Holding, Ilim Group, the alliance in the Russian forest sector.

See also[edit]

References[edit]

External links[edit]