International Paper Company
), a global paper and packaging firm, has recently pledged its
commitment to sustainable forest management by joining the Global
Forest & Trade Network in North America (GFTN) that focuses
on eliminating illegal logging and promoting eco-friendly and
socially secured forest management practices. With this
initiative, International Paper has joined the WWF (World
Wildlife Fund) led campaign to support and facilitate greater
coordination of national and regional efforts for a responsible
and credible forest management program.
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Initially, International Paper's participation will be limited to
the fiber sourced from its North American and Brazilian mills,
representing over two-thirds of its global fiber volume. The
company expects its involvement and purchasing power to
eventually force the suppliers for responsible forestry around
the globe. In concurrence with this commitment, International
Paper will issue an updated global fiber sourcing policy at its
Earlier, in 2012, International Paper had announced a voluntary
initiative to increase the third-party certified wood fiber by
15% by 2020. Joining GFTN partly fulfills this goal of the
company and further supports to preserve the biodiversity and
ecological balance. The company has already increased its
sourcing of wood fiber from Forest Stewardship Council in the
U.S. by over 1.2 million tons in the past five-year period, and
expects a three-fold increase by 2014.
International Paper has historically followed an inorganic growth
strategy to extend its operations. The company acquired
Temple-Inland Inc. in Feb 2012 and the corrugated packaging
) in Aug 2008.
International Paper expects the acquisition of Temple-Inland to
yield synergies of $400 million by the end of 2013, derived
largely from operations, freight, logistics, selling expense and
overheads. Moreover, the combination is likely to fortify
the packaging business of North America by increasing its share
in the corrugated packaging market to 34% from the existing level
Headquartered in Memphis, Tenn., International Paper has
manufacturing operations in North America, Europe, Latin America,
Russia, Asia and North Africa. The company's businesses include
uncoated papers and industrial and consumer packaging. Employing
approximately 70,000 people, International Paper has a strategic
presence in more than 24 countries serving customers worldwide.
International Paper currently has a Zacks #3 Rank (Hold). Other
notable stocks in the industry worth mentioning are
Resolute Forest Products Inc.
), each carrying a Zacks Rank #1 (Strong Buy) each.