MEMPHIS, Tenn., Nov. 21 /PRNewswire-FirstCall/ -- International Paper today announced the indefinite closure of its Louisiana Mill in Bastrop. The decision to idle the 100 percent pulp mill operation is because of the continuing decline in pulp demand from its customers worldwide coupled with a weak economy across the globe. The closure will result in curtailment of the company's annual pulp production capacity by approximately 450,000 tons. The shutdown process will begin immediately. The mill is currently taking downtime due to a lack of pulp orders.

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"We have carefully reviewed current options for the Louisiana mill and determined that because of an accelerating decline of pulp demand by our customers and the continued weakening of the global economic outlook for the foreseeable future, we needed to reduce our pulp production and close the mill indefinitely," said Wayne Brafford, IP's senior vice president, Printing & Communications Papers. "Our company is committed to matching our supply with the needs of our customers, which makes this difficult business decision necessary in a rapidly declining pulp marketplace. We will also work closely with our customers to help them meet their product needs."

"As always, the most difficult part of this closure is the effect on employees, their families and the community," said Brafford. "The hard-working employees at the Louisiana mill have not only consistently performed and made excellent quality products for years, but have also been great examples of excellence in safety and employee engagement. We will do all we can to assist them during the closure process."

The indefinite closure will affect approximately 550 employees at the Louisiana mill. Salaried and non-exempt employees will be offered severance packages and outplacement assistance. The company is committed to working closely with union officials to determine benefits. Negotiations concerning the effects of the closure with the union will begin as soon as possible. Employee assistance providers will be available to support employee and family needs.

About International Paper

International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs more than 65,000 people in more than 20 countries and serves customers worldwide. 2007 net sales were approximately $22 billion. For more information about International Paper, its products and stewardship efforts, visit www.internationalpaper.com.

About the Mill

The Louisiana mill is part of International Paper's Printing & Communications Papers sector. The mill operates three pulp machines that produce market pulp in both roll and bale and fluff pulp for hygiene products. The facility employs approximately 550 people.

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these statements. Factors which could cause actual results to differ include delays in the process of shutting machines down and changes in market conditions, which may require the company to shut the mill down permanently, bring the mill back up or convert it to another use. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors that could cause or contribute to actual results differing materially from such forward looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.

SOURCE International Paper

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