Full Description

International Paper Company (International Paper), incorporated in 1941, is a global paper and packaging company that is complemented by a North American merchant distribution system, with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. During the year ended December 31, 2008, the Company operated 23 pulp, paper and packaging mills, 157 converting and packaging plants, 19 recycling plants and three bag facilities. During 2008, the production facilities in Europe, Asia, Latin America and South America included eight pulp, paper and packaging mills, 53 converting and packaging plants, and two recycling plants. The Company operates in six segments: Printing Papers, Industrial Packaging, Consumer Packaging, Distribution, Forest Products, and Specialty Businesses and Other. On August 4, 2008, International Paper completed the acquisition of the assets of Weyerhaeuser Company’s Containerboard, Packaging and Recycling (CBPR) business.

Printing Papers

International Paper produces uncoated printing and writing papers. Products in this segment include uncoated 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 business also produces a variety 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, Ballet, Rey and Chamex.

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, southern softwood pulp, as well as southern and birch hardwood paper pulps. These products are produced in the United States, France, Poland and Russia, and are sold worldwide.

Industrial Packaging

International Paper is the manufacturer of containerboard in the United States. Its products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. About 80% of its production is converted domestically into corrugated boxes and other packaging by the 137 United States container plants. In Europe, its operations include recycled containerboard mills in France and Morocco, and 22 container plants in France, Italy, Spain, Turkey and Morocco. In Asia, its operations include 10 container plants in China and one container plant in Thailand.

Consumer Packaging

The Company’s coated paperboard business produces coated paperboard for a variety of packaging and commercial printing end uses. Everest, Fortress, and Starcote brands are used in packaging applications for everyday products, such as food, cosmetics, pharmaceuticals, computer software and tobacco products. 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. International Paper is a producer of solid bleached sulfate board with annual United States production capacity of about 1.9 million tons. Shorewood Packaging Corporation utilizes emerging technologies in its 18 facilities worldwide to produce packaging with graphics for a variety of markets, including home entertainment, tobacco, cosmetics, general consumer and pharmaceuticals. Its Foodservice business offers cups, lids, food containers and plates through three domestic plants and four international facilities.

Distribution

Through xpedx, the Company’s North American merchant distribution business, it provides distribution services and products to a number of customer markets, supplying commercial printer with printing papers and graphic pre-press, printing presses and post-press equipment; building services and away-from-home markets with facility supplies, and manufacturers with packaging supplies and equipment. xpedx is a wholesale distribution marketer in these customer and product segments in North America, operating 129 warehouse locations and 131 retail stores in the United States, Mexico and Canada.

Forest Products

International Paper manages approximately 200,000 acres of forestlands in the United States. The Company focuses on operations maximizing the value from the sale of its remaining forestland and real estate properties.

Specialty Businesses and Other

The Specialty Businesses and Other segment principally included the operating results of the Arizona Chemical business, as well as certain smaller businesses. The Arizona Chemical business was sold in February 2007.