# Huge MeadWestvaco land sale in GA/AL



## whitworth (Mar 11, 2007)

http://www.ledger-enquirer.com/mld/ledgerenquirer/business/16653599.htm

Posted on Thu, Feb. 08, 2007

MeadWestvaco selling 227,000 acres
Company getting out of forestry management business here
BY TONY ADAMS
Staff Writer

While it plans to remain a large employer in Russell County, MeadWestvaco Corp. is preparing to sell 227,000 acres of timber land straddling the Alabama-Georgia border south of Phenix City and Columbus.

Another 63,000 acres are being sold in West Virginia, bringing the three-state total to 290,000 acres.

"We're just starting to talk to potential buyers and qualify them right now. There's been a good amount of interest," MeadWestvaco spokeswoman Alison von Puschendorf said Tuesday from the company's headquarters in Richmond, Va.

MeadWestvaco would only say the land deals should close some time in 2007. About 35 employees in the firm's forestry division will be affected by the sales, though von Puschendorf said it's too early to say how many cuts will come locally.

"We're still determining how that's all going to shake out as we close some of these land sales," she said.

MeadWestvaco employs about 990 people between its Mahrt paper mill and sawmill in Cottonton, Ala., about 25 minutes south of Phenix City on Alabama Highway 165. Another 30 are in the company's Phenix City office.

The local operation churns out paper board used in packaging everything from beverages and cereal to frozen meals and auto parts. The oldest portion of the local operation, the massive paper mill, dates to 1966.

"It's unaffected," von Puschendorf said. "I don't want to create or mislead the employees into reading something that this has a major impact on that mill operation."

The land sales come, however, with MeadWestvaco working to restructure itself -- von Puschendorf called it a "transformation" -- into a more efficient and focused operation. Moves have included selling off some plants and shifting the corporate headquarters from Stamford, Conn., to Richmond. The firm also purchased Calmar, a manufacturer that makes plastic dispensing and spraying pumps used in products such as body lotions.

There have been financial costs behind the restructuring as well. MeadWestvaco last week reported a 34 percent decline in its fourth-quarter earnings, from $62 million a year ago to $41 million during the recent three-month period ended Dec. 31. Total revenue was $1.78 billion, up 9 percent.

The firm took a $34 million charge related to restructuring and a $12 million charge connected to cost-cutting efforts.

The efficiency moves obviously include getting out of the forestry management business. MeadWestvaco said it expects to secure contracts with the purchasers of its properties in Georgia, Alabama and West Virginia to supply its mills with "fiber," the substance in trees used to make paper.

John Luke Jr., MeadWestvaco chairman and chief executive officer, said in a statement that the land sales and restructuring are critical to his company's health.

http://www.tappi.org/s_tappi/doc.asp?CID=183&DID=554201

MeadWestvaco to Sell 300,000 Acres of U.S. Forestlands (2/01/2007)

MeadWestvaco noted in its quarterly earnings report that it plans to sell some 300,000 acres of its forestlands throughout West Virginia, Alabama, and Georgia. The land sales include 82,000 acres in Alabama, 145,000 acres in Georgia, and 63,000 acres in West Virginia, and will continue to function as forestland under new ownership. The company will work with potential buyers to ensure that the land continues to be managed sustainably through the Sustainable Forestry Initiative. MeadWestvaco will retain strategic fiber supply agreements to support its mills in Alabama and Virginia.

“As MeadWestvaco achieves global leadership in packaging solutions, we are required to re-examine our business structure and assets, and make the necessary decisions that will support our long-term vision,” said John Luke Jr., chairman and CEO. “Now is the right time to capture the strong value of our forestlands in West Virginia, Alabama, and Georgia. 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.”

The company added that it will align its staffing in the Forestry division with future forestland management needs. Approximately 35 employees will be affected by the land sales.





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"We are required to re-examine our business structure and assets, and make the necessary decisions that will support our long-term vision," he said.


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## whitworth (Mar 11, 2007)

*Large Forest Sales, Increasing Land Values and Increasing Taxes*

A good summary why deer leasing prices are going up in Georgia. 


http://www.alfriendforesters.com/page6.html

 "During 2006, International Paper completed the sale of 5.4 million acres in the United States for $6.1 billion. Meade Corporation is contemplating a major sale of timberland, with a large segment being in the low country of South Carolina. Augusta Woodlands has announced the sale of approximately 55,000 acres located in the East Central area of Georgia and Western South Carolina below Augusta. International Paper also announced recently that West Frazier Timber Company from Canada is purchasing 13 sawmills, three are located in Augusta, Folkston, and Newberry, South Carolina. The face of the traditional forest industry has changed and will continue to change. We are of the opinion that more demand is going to be shifted to private landowners to provide fiber for the various markets."

"Property taxes continue to increase, are oppressive, and discourage good forest management. In 1991, when land prices were $250 to $300 per acre in most counties, the forest community promoted the removal of timber from county tax digests and annual taxes were paid only on land. When timber is sold, a property tax is paid. At that time, timber values far exceeded the value of land. Now with appreciating land values that are in the neighborhood of $1,200 to $1,500 per acre in most counties and much higher in developing counties, property and timber taxes create a cash windfall for counties and municipalities. The Conservation and Preferential Tax Programs provide relief, with the Conservation Program providing significant tax relief. Many of you are enrolled in these programs, and if you are not, it is costing you tax dollars. As land prices increase, more and more landowners are enrolling in the Conservation Use Program, reducing taxes from $12 to $15 per acre to $4 to $5 per acre. Keep in mind that counties only shift the tax burden to homeowners and other taxpayers in order to generate the revenues perceived as needed."


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## tmelrod (Mar 12, 2007)

temple inland is selling all 1.8 million acres of timberland in al, ga, la, and tx.


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## Mac (Apr 8, 2007)

tmelrod said:


> temple inland is selling all 1.8 million acres of timberland in al, ga, la, and tx.



anyone know any details of the sale?


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