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International Paper (IP) Buys Berkley's Molded Fiber Unit

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International Paper Company (IP - Free Report) recently acquired Berkley International's Molded Fiber (pulp) manufacturing unit, Berkley MF LLC.

In 2019, Berkley shifted its operations into an 80,400-square-foot state-of-the-art molded fiber manufacturing plant outside of Reno, NV, following seven years of manufacturing outside of Los Angeles.

Berkley International teams up with companies which are focused on using their sustainable packaging technology for e-commerce and food packaging applications. Berkley MF is a provider of in-house design, manufacturing and distribution of custom-made molded fiber packaging products. In fact, Berkley is committed to bringing the domestic molded pulp manufacturing sector a cost-effective alternative to single-use plastic, and foam-based packaging mediums like EPS (Styrofoam).

Mergers and acquisitions remain a key strategy for International Paper to strengthen its packaging business. In North America, the company envisions a large opportunity within its industrial packaging businesses, which continues to generate the best margins in the industry. The company is also taking initiatives to drive margin expansion over time across the business.

International Paper is witnessing solid demand on processed food, beverage, proteins, chemicals, paper tissue and towel. The company will continue to benefit from the growing e-commerce demand as it has become a primary spending channel for customers owing to restrictions amid the pandemic. Moreover, the company’s Global cellulose fibers segment is well poised to gain from solid demand for absorbent hygiene products and tissue products amid the pandemic.

Price Performance

International Paper’s shares have gained 36.5% over the past year compared with the industry’s growth of 41.4%.

Zacks Rank & Stocks to Consider

International Paper currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space include Impala Platinum Holdings Limited (IMPUY - Free Report) , Fortescue Metals Group Limited FSUGY and BHP Group BHP. All of these stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Impala Platinum has an expected earnings growth rate of 195.9% for the current fiscal year. The company’s shares have surged 84% in the past year.

Fortescue has a projected earnings growth rate of 84.3% for the current fiscal year. The company’s shares have soared 182% in a year’s time.

BHP Group has a projected earnings growth rate of 65.6% for the current fiscal year. The company’s shares have appreciated 75% in the past year.

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