Nevada County Picayune and Gurdon Times Newspaper Archive

Georgia Pacific buys Gurdon IP facility

Georgia-Pacific Corporation has purchased the International Paper facility at Gurdon with plans to continue to operations. The acquisition is a move to better serve GP customers to the west, according to information from GP.

Information about the sale was released Dec. 21 by both GP and IP. According to James Malone, media contact for GP, the reason for the acquisition is growth.

Its an important piece for us, Malone said, speaking of the five plants that are located West of the companys current holdings. Were looking for long-term growth.

GP officials say the goal of the acquisition is to better serve an expanding customer base to the West.

Its a key long-term investment, said Malone. Looking at the long-term success of our business, it made perfect sense.

There was no statement of the price paid for the Gurdon plant, but both GP and IP indicate that the total price for the five facilities included in the sale is $237 million.

IP announced earlier this year that the company planned to focus on uncoated papers and packaging.

In a press release issued by GP, chairman and chief executive officer Joseph W. Moeller called the move a strategic decision.

Our company is making long-term, strategic investments in our businesses, and we are committed to growth - organically, through acquisitions and innovation, Moeller stated in the release. Investments in building products, such as this, are a key part of our strategy, and we see opportunities for growth across every Georgia-Pacific business.

GP is headquartered in Atlanta, Ga., and operates more than 50 facilities, according to information from GP.

Michael T. Rehwinkel, president of GP wood products, stated that the acquisition adds to the companys ability to provide cost-competitive plywood and lumber, and to improve production and transportation costs.

It also further enhances our ability to serve key customers throughout the United States, and in particular, those customers growing in the West. We're excited to have these employees and facilities become part of Georgia-Pacific.

Malone said it will take several months to complete the acquisition, and said the conversion process will likely be complete within the first half of 2007. He said the plan is to continue operations at Gurdon.

We intend to run those facilities and run them well.

Gurdon was one of five IP facilities purchased by GP. The other plants are located in Camden, Texas, Springhill, La., Corrigan, Texas, and Thorsby, Ala. Total employment of all the facilities is estimated by GP at 2,400.

In an apparently unrelated sale, IP has announced the sale of a beverage packing company that includes a mill in Pine Bluff and at least five additional facilities to Carter Holt Harvey Ltd. for $500 million. IP has also announced the sale of Arizona Chemical to Rhone Capital Ill. for $485 million. In November, IP announced the sale of 13 lumber mills to West Frasier Timber, including a mill in Leola. Facilities in Brazil, the United Kingdom and Ireland have also been sold over the past few months.