International Paper announced its intention to explore strategic options, including the possible sale, of its 50% ownership interest in Ilim Group. International Paper has no intention to seek suspension of operations or initiate any liquidation or bankruptcy proceedings with respect to Ilim Group.
In October of 2006, International Paper and Ilim Pulp announced the signing of a letter of intent to establish a 50-50 joint venture, which would be created through International Paper purchasing a 50 percent equity interest in Ilim Holding. At that time, Ilim Pulp, a subsidiary of Ilim Holding, was the largest operator of pulp and paper mills located in the European and Siberian regions of Russia.
Today, Ilim Group operates major Russian pulp and paper mills in the Arkhangelsk, and Irkutsk Regions, having branches in Koryazhma, Bratsk and Ust-Ilimsk, as well as forestry branches, procuring raw materials to the production facilities, and two corrugated cardboard plants in the Leningrad and Moscow Regions.
International Paper is a leading global supplier of renewable fiber-based products. We produce corrugated packaging products that protect and promote goods, and enable worldwide commerce, and pulp for diapers, tissue and other personal care products that promote health and wellness. Headquartered in Memphis, Tenn., we employ approximately 38,000 colleagues globally.