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ITT UNIT CLOSES PULP AND PAPER COMPLEX IN WASHINGTON STATE; COMPANY WILL TAKE $115 MILLION CHARGE IN FOURTH QUARTER /REPEATING FROM EARLIER/

 ITT UNIT CLOSES PULP AND PAPER COMPLEX IN WASHINGTON STATE;
 COMPANY WILL TAKE $115 MILLION CHARGE IN FOURTH QUARTER
 /REPEATING FROM EARLIER/
 NEW YORK, Nov. 12 /PRNewswire/ -- ITT Rayonier, the forest products subsidiary of ITT Corporation (NYSE: ITT), today announced the permanent closure of a Hoquiam, Wash. integrated pulp and paper complex. The facility has operated only on an intermittent basis since the beginning of the year as the result of weak paper markets and has been closed since Nov. 3.
 ITT Corporation said that the decision will result in an estimated after-tax charge in the fourth quarter of $115 million, equivalent to $0.87 per fully diluted ITT common share, to cover the loss on the disposal of assets and for closure expenses.
 The complex consists of a pulp mill and related lignin products operation owned by ITT Rayonier, and the Grays Harbor Paper Company which is owned jointly by International Paper and ITT Rayonier. Total employment is 628.
 ITT Rayonier and International Paper reached the decision to close after a comprehensive examination of strategic alternatives. Through nine months of 1992, ITT Rayonier incurred $11 million in pre-tax losses related to its interest in the pulp and paper activities at the complex.
 The companies had been seeking a buyer for the complex since June. Mounting financial losses due to weak paper markets caused by excess capacity, high wood costs resulting from environmental restrictions, and lack of interest from potential buyers led to the closure.
 ITT Rayonier said it would provide more than $2 million to assist the community and its employees in addition to its normal severance policy. Included in the program are funds for job training and outplacement services and to offset the economic impact to the community. ITT Rayonier said it would work closely with local officials and community leaders to earmark funds where they are most needed.
 ITT expects that tax benefits associated with the write-offs would mostly offset cash closure costs associated with termination of operations. Included are environmental obligations which are not estimated to be material.
 ITT Rayonier has been involved in the facility since it began operation in 1929. The Grays Harbor Paper Company was originally jointly owned by ITT Rayonier and Hammermill Paper Company. International Paper purchased Hammermill Paper in 1986.
 -0- 11/12/92
 /CONTACT: Jim Gallagher, 212-258-1261, or Jay Fredericksen, 203-964-4619, both of ITT/
 (ITT) CO: ITT Rayonier; ITT Corp. ST: Washington, New York IN: PAP SU:


SH -- NY073 -- 0325 11/12/92 15:44 EST
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Publication:PR Newswire
Date:Nov 12, 1992
Words:416
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