International Paper To Close Its Courtland, Ala. Mill - Quick Facts

(RTTNews) - International Paper (IP) announced plans to permanently close its Courtland, Ala. Mill, a facility part of the company's Printing and Communications Papers Business. The closure will reduce the company's North American uncoated and coated freesheet paper production capacity by 950,000 tons. The company noted that its fluff pulp business is not impacted by the announcement.

The company estimates that the mill closure will result in pre-tax noncash asset write-off and accelerated depreciation charges of approximately $550 million and pre-tax cash severance and other shutdown charges of approximately $125 million to be recorded during the remainder of 2013 and in 2014.

The Courtland Mill produces papers for forms, envelopes, labels, copiers, printers and magazines. International Paper Chairman and CEO, John Faraci, said, "This decision to permanently close capacity is primarily being driven by demand decline for uncoated freesheet paper products in the United States."