International Paper Co. (IP) plans to close an Alabama mill as the result of weakening demand in the U.S. for paper used in products such as forms, envelopes and printers, a move that will affect 1,100 employees.
Demand for uncoated freesheet in North America has been in decline for more than a decade, with the pace of the decline increasing recently as consumers turn to electronic alternatives such as online publications and electronic billing and filing, the company said.
The paper-and-pulp company expects to record asset write-downs and accelerated depreciation charges of $550 million and restructuring-related charges of $125 million in 2013 and 2014.
International Paper has a global workforce of roughly 70,000 people.
The company in July reported that its second-quarter profit rose 93% as the company reported higher sales amid stronger volumes and higher margins.
Shares were down 35 cents at $48.92 in early trading.
