International Paper is selling three of its lumber mills, including the Sampit lumber mill near Georgetown

Dec 07, 2007. /Lesprom Network/. International Paper (IP) announced Thursday it is selling three of its lumber mills, including the Sampit lumber mill near Georgetown, the Sun News reported. The sale comes as IP follows a transformation plan to focus its operations on uncoated papers and packaging to increase profits. The paper company has sold the three lumber mills to the Simpson Timber Co., a subsidiary of the Simpson Investment Co., based in Tacoma, Wash., according to a statement IP released Thursday. Terms of the transaction were not released. The deal is expected to close by the end of the year or early in the first quarter. "Our plans are to offer employment to the current employees once the deal closes," said David McEntee, a spokesman for Simpson. The Sampit lumber mill, at 2701 Indian Hut Road, is one of Georgetown County's top 10 employers, according to Georgetown County's Economic Development Department. The mill employs about 140 people and produces 130 million board feet of lumber annually. "This sale is a positive step for our mill and our employees following a two-year study of strategic options for this facility," said mill manager Sandy McCorvey in a statement. Simpson has been in the forest products business since 1890. In addition to this acquisition, Simpson's subsidiaries operate five wood product manufacturing plants, one pulp and paper facility, and two door manufacturing plants in Washington. "We've been interested in the southern pine business for some time," said Ray Tennison, president of the Simpson Investment Co., in a statement. "This acquisition diversifies our business and provides opportunity in a new geographic region for Simpson. All three facilities have a well qualified management team and work force and are a good fit for our continuing strategy to acquire operations that enhance our long-term business plans," he said. Other facilities included in the IP sale to Simpson are a sales office in Wilmington, N.C., and lumber mills in Johnston and Meldrim, Ga. International Paper Co., based in Memphis, Tenn., announced its transformation plan in July 2005 to focus on uncoated products like envelopes and packaging products like corrugated containers. Since then the company has sold more than $10 billion in assets. This was part of a plan to reduce debt, increase pension contributions and return proceeds to shareholders. By the end of 2006, the company had reduced its debt by $6.2 million and made $1 billion in voluntary contributions to its pension fund, according to IP's 2006 annual report.