WaterSound, Florida, USA, 22 November 2010 -- The St. Joe Company (NYSE: JOE) announced today that it has entered into a new pulpwood supply agreement with Smurfit-Stone Container Corporation.
Under the agreement, which is effective immediately, St. Joe will sell 3.9 million tons of pulpwood to Smurfit-Stone's pulp and paper mill in Panama City, Florida, over the next seven years. The new agreement replaces an agreement that the two companies entered into in July 2000 and that was scheduled to expire in June 2012.
"We are pleased to extend our relationship with Smurfit-Stone and to continue our long-standing, mutually beneficial partnership," said Britt Greene, president and CEO of St. Joe.
The new agreement includes more favorable pricing terms for St. Joe and guarantees steady demand for much of the company's pulpwood harvest. In addition, the agreement removes certain restrictions on St. Joe's timberlands contained in the previous agreement, allowing for greater flexibility related to St. Joe's rural land sales activities. For Smurfit-Stone, the agreement ensures the steady supply of a significant portion of its fiber needs.
"This is a win-win outcome for both St. Joe and Smurfit-Stone," said Will Sonnenfeld, senior vice president Forestry and Land Sales at St. Joe. "Smurfit-Stone is an outstanding customer and the largest buyer of pulpwood in our region. The new agreement strengthens an important relationship with a key customer while advancing our efforts to optimize our timberland management and enhance the earnings of our forestry segment."
More information regarding the new pulpwood supply agreement will be available in the 8-K to be filed today with the U.S. Securities and Exchange Commission.
The St. Joe Company, a publicly held company currently based in WaterSound, is one of Florida's largest real estate development companies and northwest Florida's largest private landowner. St. Joe is primarily engaged in real estate development and sales, with significant interests in timber. More information about the company can be found at www.joe.com.