Description of International Paper's Business Segments
International Paper Company is a leading global producer of paper and packaging products, operating across various segments that encompass a wide range of products and services. Below is an extensive overview of the companys major segments, products, and services as of October 2023:
Printing Papers
Uncoated Papers: International Paper is recognized as one of the largest manufacturers of uncoated printing papers. This category includes a variety of grades designed for different applications such as desktop and laser copiers, digital imaging printing, and a wide range of advertising materials. Common uses include:
- Brochures and pamphlets - Greeting cards - Books and annual reports - Direct mail publications
The uncoated papers are available under several brand names, including Hammermill, Springhill, Great White, Strathmore, Ballet, Beckett, and Rey. The production capacity of mills that create uncoated papers is approximately2 million tons annually, with facilities located in the U.S. Scotland, France, Poland, and Russia.
Coated Papers: This portion of the printing papers segment focuses on coated papers used for diverse applications, including:
- Catalogs - Direct mailings - Magazines and inserts - Commercial printing
Products in this category include coated free sheet, coated groundwood, and supercalendered groundwood papers. The production capacity for coated papers is about 2 million tons annually within the United States.
Market Pulp: Market pulp serves as a primary material for manufacturing various types of printing, writing, and specialty papers. It also has applications in consumer products such as diapers and sanitary napkins. This includes several types of pulp products like:
- Fluff pulp - Northern and southern softwood pulps - Northern, southern, and birch hardwood pulps
This production occurs in multiple locations, including the United States, Canada, France, Poland, and Russia.
Industrial and Consumer Packaging
Industrial Packaging: International Paper stands as the third-largest manufacturer of containerboard in the U.S. boasting an annual production capacity of about5 million tons. The company’s output includes specialty grades like PineLiner and BriteTop, with approximately 65% converted into corrugated boxes and other packaging products at 51 container plants in the U.S. International operations also exist in Europe, with a focus on recycled containerboard production in France, alongside facilities in several other European countries, as well as in South America and Asia.
Consumer Packaging: The company leads the industry in producing solid bleached sulfate packaging board, with an annual production capacity of about 2 million tons. The brands Everest, Fortress, and Starcote serve a range of applications, particularly in food, cosmetics, and pharmaceuticals. Approximately 40% of this production is converted into packaging products within their plants. Their Beverage Packaging business offers integrated packaging systems, from paper to filling technology, including advanced barrier board solutions like Tru-Taste, designed for long-life juice products.
The Shorewood Packaging division produces high-impact graphics packaging for diverse markets, which encompasses home entertainment and pharmaceuticals. The Foodservice segment provides comprehensive food packaging solutions such as cups, lids, containers, and plates.
Distribution
International Papers distribution network, through its xpedx division, effectively services multiple markets, including commercial printing and packaging supplies. Operating 126 warehouse locations and 141 retail stores in the U.S. and Mexico, xpedx is a leading wholesaler in North America. International operations in Europe are handled through Papeteries de France and Scaldia.
Forest Products
Forest Resources: International Paper owns or manages approximately 8.3 million acres of forestland, mainly located in the southern U.S. These lands are highly valued for their economic potential, and tree harvesting on these lands provides approximately 25% of the wood fiber requirements for other business segments. Sustainable forestry practices are employed, and lands are third-party certified by the Sustainable Forestry Initiative.
Wood Products: The company operates 35 plants specializing in lumber, plywood, engineered wood products, and utility poles, primarily located in southern U.S. states and Canada. Annual production figures estimate approximately4 billion board feet of lumber and 1.6 billion square feet of plywood within U.S. operations.
Specialty Businesses and Other
Chemicals: Arizona Chemical, a subsidiary of International Paper, leads in producing specialty resins derived from crude tall oil, utilizing byproducts from the wood pulping process. These resins are primarily used in adhesives and inks, produced at multiple facilities in the U.S. and Europe.
Industrial Papers: This segment focuses on lightweight and pressure-sensitive papers with an annual capacity of about 375,000 tons. Applications for these products include pressure-sensitive labels, various types of packaging, sealants, tapes, and personal hygiene products.
International Paper continues to leverage its extensive operational capabilities, product offerings, and commitment to sustainability to maintain its position as a global leader in the paper and packaging industry.
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