[StBernard] Louisiana Mill Shifts Focus and Remains Open

[Westley Annis]

Louisiana Mill Shifts Focus and Remains Open

BASTROP - Louisiana Economic Development (LED) and International Paper (IP) announced today that the Louisiana Mill located in Bastrop, La. would remain open and become a producer of pulp. IP management had been exploring strategic alternatives for the Louisiana Mill, including possible closure, as part of its transformation plan, announced in 2005. With this commitment to plant reinvestment, IP's Louisiana Mill will remain in production and continue to produce product and compete in the global market place. 

Governor Blanco congratulated IP for making this strategic decision. "As Governor of Louisiana, I am proud to announce a new partnership with International Paper. The changing demand-supply dynamics of North American and global markets subjects International Paper's business plan to dramatic changes almost daily. I am most pleased that International Paper has recognized and chosen to invest in what won't change. Here in Louisiana, International Paper will continue to be supported by a world class Louisiana work force and an abundant supply of timber. We congratulate International Paper on their re-investment in the Louisiana Mill. We are confident that Louisiana will continue to contribute significantly to International Paper's continued status as the global leader in paper, packaging and wood products."

"The pulp and paper industry has undergone massive changes in recent years. Between 2000 and 2005 alone, more than 100 mills closed in North America. Louisiana Economic Development (LED) worked closely with International Paper to explore alternatives that could lead to a positive transformation plan for this facility," said LED Secretary Michael J. Olivier. "We are pleased we have successfully achieved this milestone, and that this plant will continue to operate in Morehouse Parish."

IP announced it will invest approximately $10 million to convert its Louisiana Mill in Bastrop to 100 percent market and fluff pulp production. Conversion of the mill will begin later this year with equipment upgrades to be completed by the fall of 2008. Going forward the mill will have the capacity to make up to 450,000 tons per year of primarily softwood pulp, used in tissue, towels, paper and packaging, as well as fluff pulp, used in diapers and personal hygiene products. 

Wayne Brafford, senior vice president of IP's printing and communications papers sector added, "The assistance from Governor Blanco and the LED team has been instrumental in helping the mill continue to operate. They have been actively involved in discussions with us over the last two years and eager to lend support on a number of fronts."

###