International Paper has instructed contractors and suppliers this week to stop work on multiple capital projects at its mills, according to reliable sources.
Projects affected include, but may not be limited to, International Paper facilities in Rome, Georgia; Prattville, Alabama; Pine Hill, Alabama and Selma, Alabama, Paperitalo Publications was told.
After International Paper issued its third quarter results two weeks ago, Mark Wilde of BMO Capital Markets said IP had a "good quarter" with "encouraging" fourth quarter guidance, adding "Near-term business fundamentals are healthy...and IP is generating a lot of cash."
Paperitalo Publications reached out to International Paper's Director of Corporate Communications, Tom Ryan, who said, "This year, as in every other year, we are committed to operating within our budget for capital spending; with such a large global mill system, it is not uncommon to delay certain capital projects."
Others sources have told us the problem is a project overseas that is experiencing difficulties. Further, some contractors have been told the work in the mills previously mentioned will likely resume after the first of the year.
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