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PROCTER & GAMBLE PLANS TO SELL PULP BUSINESS

 PROCTER & GAMBLE PLANS TO SELL PULP BUSINESS
 CINCINNATI, March 25 /PRNewswire/ -- The Procter & Gamble Company


(NYSE: PG) announced today that it intends to sell its pulp business. The sale would include a cotton linters pulp plant in Memphis, Tenn.; and wood pulp plants in Oglethorpe, Ga., Perry, Fla.; and Grande Prairie, Alberta, Canada. Timber assets in Georgia and Florida, as well as sawmills in Georgia and Alberta, also will be offered for sale. The company has retained the investment banking firm of Goldman, Sachs & Co. to advise it on the sale.
 "We have been in the pulp business for over 70 years, so this was not a decision that was made lightly," said P&G chairman of the board and chief executive Edwin L. Artzt. "We believe we are among the most efficient producers at each of our manufacturing facilities. Also, the business, while certainly cyclical, has made good profits. But, we have been reviewing our corporate strategy well into the next century and have concluded that the commercial pulp business is not a good fit with P&G's long-term strategic interests.
 "Our objective is to become more globally focused on our core consumer businesses in health care, beauty care, laundry and cleaning products, paper products and food and beverage products," Artzt said. "With so many growth opportunities in front of us, we need to be able to focus our resources on the development of consumer products for both the retail and institutional markets."
 P&G's strategic review of the pulp business included a thorough analysis of the economic and technology benefits of vertical integration all the way back to growing the trees used in the paper business. "We concluded that we would be better off working with raw material suppliers rather than continuing to create much of our own raw material supply internally," Artzt added.
 P&G's pulp business has about 3,200 employees worldwide. "We believe it will be in the long-term best interests of these employees to be associated with companies for which commercial pulp is a primary core business," Artzt said. "We will work with any new owner to provide continued employment for as many employees as possible."
 Artzt went on to explain that the company's decision to exit the pulp business does not mean that P&G will eliminate all internal vertical integration of raw materials. "These decisions are made on a case-by-case basis, and if there are strategic, proprietary or economic benefits to continue developing basic or intermediate raw materials, we will continue to do so," Artzt said.
 Procter & Gamble had worldwide sales of $27 billion in fiscal 1990-91. The company makes and markets a wide range of products for both consumer and institutional use worldwide. P&G does business in more than 140 countries.
 -0- 3/25/92
 /CONTACT: S.M. Hale, 513-983-6325; T.S. Stewart, 513-983-8058; or M.L. Hailey, 513-983-1975; all of Procter & Gamble/
 (PG) CO: Procter & Gamble ST: Ohio IN: SU:


KK -- CL019 -- 1613 03/25/92 15:18 EST
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Publication:PR Newswire
Date:Mar 25, 1992
Words:500
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