VA.
Source: dailypress.com, by the Associated Press
January 05, 2007
ELKINS, W.Va. -- Paper and packing company MeadWestvaco Corp. will sell 300,000 acres of forest land in West Virginia and other Southern states as part of a restructuring plan.
The suburban Richmond, Va., company announced the sales in its quarterly earnings report Wednesday but did not estimate how much revenue they might generate.
"Now is the right time to capture the strong value of our forest lands in West Virginia, Alabama and Georgia," said John A. Luke, chairman and chief executive. "By retaining fiber supply agreements to support our mills, we are able to operate more cost efficiently, sharpen our focus on packaging solutions and deliver value to our shareholders."
Up for grabs are 82,000 acres in Alabama, 145,000 acres in Georgia, and 63,000 acres in West Virginia, most of which lies in Randolph County.
MeadWestvaco expects to complete the sales later this year.
The decision will affect about 35 employees in the forestry division, but a company spokeswoman said it is not clear whether they could be laid off.
Company spokesman Roger Sherman said the size of the West Virginia tracts means the deal will likely be made with other forest product companies. It will be sold in two parcels, and the buyer should plan for sustainable harvesting as a condition of the sale, he said.
The land will not be available for purchase until at least late February, Sherman said.
The company's Web site said that as of January 2006, MeadWestvaco owned or managed 1.4 million acres of forest in the United States and Brazil.
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