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International Paper announced that it is implementing a transformation plan aimed to build up its balance sheet and make money for shareholders.

In an effort to do this, the company will be narrowing its portfolio to two key platform businesses, while seeking spin-off or selling options for its other businesses.

International Paper said that the two key platform businesses that it will concentrate on are Uncoated Papers and Industrial and Consumer Packaging.

"We already have a strong global position in uncoated paper and have a growing worldwide platform in packaging. Our portfolio changes will allow us to better focus management attention and financial resources on these key businesses, which represent over 70 percent of our sales, and can achieve both cost-of-capital returns and profitable growth," said Chairman and CEO John Faraci.

Among the businesses that International Paper will seek sale or spin-off options for are the company's 50.5 percent stake in Carter Holt Harvey, its Coated and Supercalendered (SC) Papers Business, its Beverage Packaging Business, Kraft Papers Business, Arizona Chemical, some or possibly all of its forestland property, and its wood products business.

"Considering our desire to develop strong businesses that can compete and grow globally, we have made choices about which businesses to focus our management and financial resources," said Faraci. "The businesses being evaluated for potential sale or spin-off are good businesses that may be better positioned with different ownership."

International Paper intends to evaluate these businesses until the first quarter of next year. These businesses combined made up about 30% of the company's total sales last year.

Chris is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.