TRENDS AND IMPACTS OF FOREIGN INVESTMENT IN DEVELOPING COUNTRY AGRICULTURE

BOX 5
International Paper Company
Part 3: Policies for attracting FDI and impacts
on national economic development
International Paper Company operates as a paper and packaging company with operations in
North America, Europe, Latin America, Russia, Asia and North Africa. Its Industrial Packaging segment
manufactures containerboards. Its products include linerboard, medium, whitetop, recycled linerboard,
recycled medium and saturating kraft. The company’s Printing Papers segment produces uncoated
freesheet printing papers, including uncoated papers, market pulp, coated papers and uncoated bristols. Its
Consumer Packaging segment offers coated paperboard for various packaging and commercial printing end
uses. The company’s Distribution segment distributes products and services to various customer markets,
supplying printing papers and graphic pre-press, printing presses, and post-press equipment for commercial
printers; facility supplies for building services and away-from-home markets; and packaging supplies and
equipment for manufacturers, as well as offers warehousing and delivery services. Its Forest Products
segment owns and manages approximately 200 000 acres of forestlands and development properties
primarily in the United States. The company was founded in 1898 and is based in Memphis, Tennessee.
Source: http://finance.yahoo.com/q/pr?s=IP+Profile accessed on August 21th, 2010
In Brazil International Paper’s production system is comprised of two pulp and paper mills in Mogi Guaçu and
Luiz Antônio, and a paper mill in Três Lagoas. Together, the three mills produce paper for Brazil and export
markets, in addition to products on the Chambril line for conversion and printing. The mill located in Mogi
Guaçu, in São Paulo, is the first mill of IP within Brazil and has a production capacity of 440 tonnes of paper
per year. Incorporated into the business portfolio of IP in 2007, the Luiz Antônio mill located near Ribeirão
Preto, in São Paulo, is capable of producing annually 360 thousand tonnes of paper. In operation since 2009,
the Três Lagoas mill in Mato Grosso do Sul state has automated finishing lines, capable of producing up to
140 reams of Chamex paper a minute, non-coated paper production capacity – 200 000 tons a year, and
operates some of the most advanced technology on the market. It has had US$300 million invested in it. The
newest enterprise of IP in Brazil is the first factory to be built by International Paper out of the United States.
International Paper owns 72 000 hectares of renewable eucalyptus forests used in pulp and paper
production. It also has 24 000 hectares of preserved areas, to conserve the original characteristics of the
native vegetation. These areas are distributed amongst Mogi Guaçu, Brotas and Luiz Antônio, municipalities
in São Paulo State. The necessary care required to guarantee productivity in renewable forests includes
research, studies and analysis to improve the eucalyptus species to develop new technologies. The company
produces about 16 million cuttings a year which are used in eucalyptus planting. Fire prevention and ecoefficiency
in forestry management are also constantly invested in by the company. IP has a Research Centre
with laboratories and researchers in different areas, working together and developing more sustainable
techniques and processes.
Contract forestry and Partnering: In addition to its own forests, International Paper gets raw material through
fostering forests and partnering. In contract forestry, there are about 9 500 hectares in São Paulo and Minas
Gerais States. The company supplies cuttings, technical assistance, forestry inventory, soil analysis, a map
of the plantation, and recommends fertilizer to local producers. Later, the wood is sold to the company at
market prices. So far, 122.7 million cuttings have been donated, grown, on 12 500 hectares of plantation. In
its partnering, International paper takes responsibility for expenses in the implantation and maintenance of
renewable forests. Later, these amounts are converted into wood for the company.
Source: http://www.internationalpaper.com/BRAZIL/EN/index.html accessed on 20 October 2010
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BRAZIL