UPDATE 1-Staples cuts ties with APP on environment worry

(Adds comment from Staples, background)

NEW YORK, Feb 8 (Reuters) - Staples Inc (SPLS.O), the largest U.S. office supplies retailer, said on Friday it ceased doing business with Asia Pulp & Paper (APP) late last month because of environmental concerns.

Paper from APP -- one of the world's largest paper companies -- made up about 5 percent of Staples' paper products, a company spokesman said.

Staples said it severed ties with APP because there was no indication that it was making strides to protect the environment.

Environmental groups have said that forest-clearing by the APP group was endangering tigers and other animals.

In 2004, international environmental group Greenpeace accused APP of illegal logging in remote Chinese forests. APP had also been previously accused of illegal logging in Indonesia, its main production center, but the company denied any wrong doing.

Representatives of APP could not immediately be reached for comment. (Reporting by Justin Grant and Ritsuko Ando; Editing by Steve Orlofsky)