International Paper (IP) has completed the acquisition of North Pacific Paper Company (Norpac) for $360 million. With the purchase of the US manufacturer of lightweight recycled papers for packaging applications, the company aims to strengthen its position in the western United States and create additional capacity for the growing market of sustainable packaging papers.
Norpac, based in Longview, Washington, USA, has been producing lightweight paper packaging from recycled fibres for around 50 years. Integration into the International Paper network is intended to expand production and supply chain capabilities, as well as improve supply to customers on the US West Coast.
Expansion of the packaging business
The acquisition is part of International Paper's strategic realignment. The company sees Norpac as a complement to its existing packaging solutions portfolio. In particular, it is expected that the demand for lightweight, high-performance packaging papers will be better met as a result.
„Today is an important milestone for the Norpac team and for Longview as we officially become part of International Paper,“ said Craig Anneberg, CEO of Norpac. „I am proud of what our employees have built here. Joining forces with International Paper gives us the opportunity to continue building on that foundation. We will continue to fulfil our role as a major employer and partner in the Longview region.“
Focus on the West Coast
Tom Hamic, Executive Vice President and President Packaging Solutions North America at International Paper, explained: „We are delighted to welcome the Norpac team to International Paper and look forward to what we will achieve together. Norpac is a fantastic strategic fit for our business, enhancing our ability to serve the growing customer demand for lightweight, high-performance packaging papers while improving service to our West Coast customers.“
International Paper describes the acquisition as a further step towards increasing added value for customers, employees, and shareholders. The company is one of the world's leading providers of fibre-based packaging solutions and is particularly active in the corrugated and packaging business.
Source: International Paper
