By Steve Lathrop
Albany Democrat-Herald | Posted: Monday, August 4, 2008 12:00 am
International Paper announced today that it had completed the purchase of Weyerhaeuser's Containerboard, Packaging and Recycling business, including the Albany Paper Mill in Millersburg.
The $6 billion cash deal, which was originally announced in March, is subject to post-closing adjustments but new signs are already in place at the Millersburg plant.
"Everyone here has been anxious but also excited," said mill manager Jeff Yoder. "I think we are all looking forward."
The mill employs about 290 and Yoder doesn't foresee any substantial changes under the new ownership.
"I think operations will stay the same, certainly for the short term before a specific business model is settled on," he said.
Yoder said he expected it will be six months or more before any adjustments might be made.
The purchase included eight other Weyerhaeuser containerboard mills as well as 82 packaging plants and 19 recycling plants.
Yoder said he thinks the overall impact of the purchase will be minimal at the local level and that mill jobs are secure.
"We have been preparing for the transition for the last few months," Yoder said.
International Paper is a paper and manufacturing company with operations in 20 countries. Its businesses include uncoated papers and industrial and consumer packaging. Headquarters are in Memphis, Tenn.
Company sales for 2007 were $22 billion.
"International Paper is committed to the packaging business," said Carol Roberts, senior vice president of the company's packaging business. "This combination of two great businesses will make us the premier containerboard and corrugated packaging business in the world."
The Albany Paper Mill has been at the Millersburg site since 1955, when it was opened by Western Kraft.
Yoder said that Roberts will visit the Millersburg plant next week as she tours the newly purchased businesses.