Intercontinental Paper to spin off printing paper organization

International Paper designs to spin off its printing papers company, the Memphis-based packaging, pulp and paper producer announced Thursday.

The spinoff, envisioned to be done in the third quarter of 2021, would outcome in a standalone, publicly traded printing papers business.

“We keep on being committed to making sustainable merchandise that individuals count on each individual working day and accelerating worth generation for Global Paper and our shareowners,” said Mark Sutton, chairman and chief govt officer, in a assertion. “This transaction signifies a logical upcoming stage as we carry on to build a far better IP.”

Global Paper executives explained to Wall Road analysts managers of the new business would determine exactly where to track down the headquarters. Executives mentioned the site would very likely be in the United States.

In a news launch, Worldwide Paper explained it aims to “reduce its cost framework and speed up earnings,” with the firm turning into far more streamlined right after the spinoff. It stated it expects to generate an further $350 million to $400 million in once-a-year earnings by the stop of 2023, with $300 million of that coming from “structural charge reductions.”