International Paper Achieves One Billion Milestone

IP’s group company – The Andhra Pradesh Paper Mills - founder of the largest farm forestry program in India, partners with local farmers to plant one billion trees

Hyderabad Jubilee (I-Newswire) October 25, 2012 - The Andhra Pradesh Paper Mills, Limited (APPM), today celebrated the milestone of planting one billion trees in India through its farm forestry initiative. A ceremonial billionth tree was planted at the APPM manufacturing facility in Rajahmundry by Mr. Thomas Kadien, senior vice president, Consumer Packaging & IP Asia and India, to mark the occasion.

Addressing a group of farmers, nursery managers, environmentalists and representatives of the India Forest Services, Mr. Michael Amick, president – IP India, said, “Our farm forestry program helps ensure a stable supply of raw material for our paper manufacturing while helping to create jobs and improve the lives of many families throughout the region. We want to thank the many farmers and nursery managers who have partnered with us to make this a continuing success. The program has helped restore productivity to barren lands and generate income for thousands of families. The farmers and local communities have also benefitted from firewood, feed for their cattle, and other advantages that have resulted from this program. Reaching the billion tree milestone is a testimony to our ongoing focus on sustainability and demonstrates our commitment to being responsible in the way we conduct our business. ”

The farm forestry initiative was established by APPM in the early 1980s when it recognized the growing concern of non-availability of fibrous raw material for the paper industry. The company embarked upon the ambitious program of self sustenance by generating the requisite fibrous raw material in collaboration and cooperation with farmers by utilizing their marginal and degraded lands, which were lying barren and unutilized.

This integrated pulpwood-based farm forestry project operates in nine coastal districts of Andhra Pradesh. The research and development department of the company has also developed superior clones of Casuarina and Eucalyptus. These clones can significantly increase the farmers’ productivity as well as provide better revenue generation on their lands.

The farm forestry initiative has not only resulted in International Paper in India now sourcing 100% of its raw material requirement through its farm forestry developed in the catchments, but it has been successful in bringing about the much-desired improvement in the socio-economic status of the small scale farmers and local inhabitants. Through this initiative the company has also been successful in generating supplementary benefits like reducing soil erosion and perceptible improvement in moisture conservation. The agrarian sector has benefited to a large extent with the introduction of Casuarina and Subabul not only by the sale of pulpwood to the company but also in the generation of fuel and fodder as a free-of-cost by-product.

About Andhra Pradesh Paper Mills Limited

The Andhra Pradesh Paper Mills Limited (APPAPER), a company of International Paper in India, is a leading manufacturer of pulp and paper products and caters to both domestic and foreign markets. Andhra Paper produces writing and printing and copier papers at its two manufacturing units in Andhra Pradesh, which have a total paper production capacity of 240,000 metric tons per year. The company is becoming a driving force in sustainability in the paper manufacturing arena in the world economy with sales of approximately US $160 million, focused social and community programs including its own pioneering work in raw material generation through social farm forestry and a very strong strategic growth focus. International Paper owns a majority interest in Andhra Paper and the remaining shares are publicly traded on the Bombay Stock Exchange and National Stock Exchange in India. For more information on The Andhra Pradesh Paper Mills, please visit andhrapaper.com

About International Paper
International Paper (NYSE: IP) is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs approximately 70,000 people and is strategically located in more than 24 countries serving customers worldwide. International Paper net sales for 2011 were $26 billion. Temple-Inland Inc., which was acquired in February 2012, had 2011 net sales of $4 billion. For more information about International Paper, its products and stewardship efforts, visit internationalpaper.com.