STAMFORD, Connecticut, November 13, 2004 (ENS) – Sustainable forestry standards will be maintained on International Paper's 1.1 million acres in Maine and New Hampshire forestlands, even after the forestlands are sold to GMO Renewable Resources, LLC, (GMORR) a private forest investment management company. The $250 million sale is expected to be complete by the first quarter 2005.
The companies have agreed to a long-term management contract by which International Paper will provide forest management services, including third-party certification to the Sustainable Forestry Initiative Standard [SustainbleBusiness.com editor's note: this is the industry's certification program and is much looser than the Forest Stewardship Council (FSC)'s standards].
The forestlands being sold are located in an east-west strip across central Maine, with an additional 24,000 acres in northern New Hampshire.
International Paper and GMORR have agreed to a long-term wood fiber supply agreement to continue the flow of fiber to IP's Maine paper mills in Jay and Bucksport.
"Our decision to sell these forestlands is based on achieving a superior value for our forestlands while maintaining our ability to provide for the wood fiber needs of our two Maine mills," said George O'Brien, IP's senior vice president for forest products.
"We look forward to optimizing the value of this high-quality wood resource and managing the lands as a sustainable working forest," said Bob Saul, director of domestic investments for GMO Renewable Resources.
"We also hope to build upon our strong relationship with the conservation community to keep this valuable forest resource intact," he said.
GMORR plans to continue the long standing practice of open access to these forestlands for hunting, fishing, snowmobiling and other traditional outdoor activities that have historically been provided by International Paper.
The management of the land base will continue with the same or very similar rules and regulations on responsible public use that are in place today. GMORR also plans to continue the practice of cabin site leasing for the recreational lease holders on these lands and will evaluate the recreational programs on a regular basis.
"The GMORR agreement also assures that our two companies will work closely to provide continued recreational use and conservation of the land for all who enjoy the outdoors," said O'Brien. "We have agreed with GMORR to continue managing the land to meet or exceed all requirements of sustainable forestry to ensure the protection of wildlife and fish habitat, soils, and air and water quality."
International Paper is the largest private landowner in the United States with more than eight million acres of forestland and some 19 million acres worldwide. The company is also the world's largest hardwood and pine tree seedling grower, producing nearly 400 million new trees each year.
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