International Paper Company (International Paper) is a global paper and packaging company, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. The Company operates in four segments: Industrial Packaging; Printing Papers; Consumer Packaging, and Distribution. As of December 31, 2011, in the United States, the Company operated 20 pulp, paper and packaging mills, 142 converting and packaging plants, 18 recycling plants and three bag facilities. Production facilities as December 31, 2011, in Europe, Asia, Latin America and South America included 11 pulp, paper and packaging mills, 64 converting and packaging plants, and two recycling plants. It distributes printing, packaging, graphic arts, maintenance and industrial products principally through over 153 distribution branches in the United States and 36 distribution branches located in Canada, Mexico and Asia. As of December 31, 2011, it owned or managed approximately 325,000 acres of forestland in Brazil and had, through licenses and forest management agreements, harvesting rights on Government-owned forestlands in Russia. On October 14, 2011, International Paper completed the acquisition of a 75% interest in Andhra Pradesh Paper Mills Limited. The sale of the United States portion of the Shorewood Packaging Corporation business closed on December 31, 2011. The sale of the remainder of the Shorewood business occurred during January 2012. On February 13, 2012, the Company acquired Temple-Inland, Inc. In July 2012, the Company sold its Ontario and Oxnard, California containerboard mills to New-Indy Containerboard LLC, along with its New Johnsonville, Tennessee containerboard mill to Hood Container Corporation.
Industrial Packaging
International Paper is the manufacturer of containerboard in the United States. The Company’s production capacity is about 10 million tons annually. Its products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. About 70% of the Company’s production is converted domestically into corrugated boxes and other packaging by its 127 United States container plants. Additionally, the Company recycles approximately one million tons of old corrugated containers (OCC) and mixed and white paper through its 20 recycling plants. In Europe, its operations include one recycled fiber containerboard mill in Morocco and 20 container plants in France, Italy, Spain, and Morocco. In Asia, International Paper’s operations include 19 container plants in China and additional container plants in Indonesia, Malaysia, Singapore and Thailand. The Company’s container plants are supported by regional design centers, which offer packaging solutions and supply chain initiatives.
Printing Papers
International Paper is the producer of printing and writing papers. Products in this segment include uncoated and coated papers, market pulp and uncoated bristols. Uncoated papers business produces papers for use in copiers, desktop and laser printers and digital imaging. End use applications include advertising and promotional materials, such as brochures, pamphlets, greeting cards, books, annual reports and direct mail. Uncoated papers also produce a range of grades that are converted by its customers into envelopes, tablets, business forms and file folders. Uncoated papers are sold under private label and International Paper brand names that include Hammermill, Springhill, Williamsburg, Postmark, Accent, Great White, Chamex, Ballet, Rey, Pol, and Svetocopy. The mills producing uncoated papers are located in the United States, France, Poland, Russia, Brazil and India. The mills have uncoated paper production capacity of approximately five million tons annually. Brazilian operations function through International Paper do Brasil, Ltda, which owns or manages approximately 325,000 acres of forestlands in Brazil. Market pulp is used in the manufacture of printing, writing and specialty papers, towel and tissue products and filtration products. Pulp is also converted into products, such as diapers and sanitary napkins. Pulp products include fluff, and southern softwood pulp, as well as southern and birch hardwood paper pulps. These products are produced in the United States, France, Poland, Russia and Brazil and are sold worldwide. International Paper facilities have annual dried pulp capacity of about 1.5 million tons.
Consumer Packaging
International Paper is the producer of solid bleached sulfate board with annual United States production capacity of about 1.7 million tons. Its coated paperboard business produces coated paperboard for a range of packaging and commercial printing end uses. The Company’s Everest, Fortress, and Starcote brands are used in packaging applications for everyday products, such as food, cosmetics, pharmaceuticals, computer software and tobacco products. Its Carolina brand is used in commercial printing end uses, such as greeting cards, paperback book covers, lottery tickets, direct mail and point-of-purchase advertising. The Company’s United States capacity is supplemented by about 350,000 tons of capacity at its mills producing coated board in Poland and Russia and by its International Paper & Sun Cartonboard Co., Ltd. joint venture in China which has annual capacity of 930,000 tons. Our Foodservice business produces cups, lids, food containers and plates through three domestic plants and three international facilities.
Distribution
xpedx, the Company’s North American merchant distribution business, distributes products and services to a number of customer markets, including commercial printers with printing papers and graphic pre-press, printing presses and post-press equipment; building services and away-from-home markets with facility supplies; manufacturers with packaging supplies and equipment, and to a number of customers, it provides distribution capabilities, including warehousing and delivery services. xpedx is the wholesale distribution marketer in these customer and product segments in North America, operating 101 warehouse locations and 76 retail stores in the United States, Mexico and Canada.