By Tess Stynes
International Paper Co. plans to spend $135 million to convert a
North Carolina plant to raise its production of fluff pulp used in
consumer goods such as diapers, feminine hygiene and
adult-incontinence products.
In a related move, International Paper agreed to sell the
Carolina brand, used for printed materials such as greeting cards
and brochures, to MeadWestvaco Corp. Terms of the deal, expected to
close at the end of April, weren't disclosed.
International Paper said fluff and softwood pulp production
capacity will increase by 400,000 tons, with flexibility to shift
between the two products. The company estimates the conversion will
allow the production of 1.4 million tons of high-quality fluff a
year. The new fluff pulp capacity is expected to ramp up in
mid-2016.
As a result of the plant conversion, International Paper also
will reduce its coated paperboard capacity by 350,000 tons, part of
the company's effort to focus the remaining paperboard business on
the food-service and packaging markets.
MeadWestvaco executive Bob Feeser said the acquisition will
expand the packaging company's ability to serve the commercial and
specialty print markets. MeadWestvaco also expects significant
operational improvements from the integration of the business into
its existing mill system.
Write to Tess Stynes at tess.stynes@wsj.com
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