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International Paper estimates $50 million in damages from mill explosion

International Paper Company (IP) released their annual report yesterday with mentions of the paper mill explosion that happened earlier this year.

In their report, IP estimated it would take about three months and more than $50 million to repair the damage from the explosion in Cantonment on January 2, 2107.

Below is a segment from the annual report addressing the damages:

On January 22, 2017, International Paper Company experienced significant structural damage to the largest pulp digester as well as the power house at its Pensacola pulp and paper mill in Cantonment, Florida. We estimate that repairing the damaged digester may take approximately three months. While we have property damage and business interruption insurance for these types of events, we expect the costs associated with this event to be in excess of deductibles. The timing of these costs and potential insurance recoveries is unknown.
In addition, the Company is evaluating the financial impact of the digester incident that occurred on January 22, 2017 at the Pensacola mill. It is currently estimated that the total impact will be in excess of $50 million, but that property damage and business interruption insurance will cover a significant portion of the costs. The timing of these costs and potential insurance recoveries is unknown.

To read the full annual report, click here.

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