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St. Joe, Smurfit-Stone Ink New Pulpwood Supply Agreement

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The St. Joe Company, Watersound, Fla., USA, has entered into a new pulpwood supply agreement with Smurfit-Stone Container Corp., Chicago, Ill., USA. Under the agreement, effective immediately, St. Joe will sell 3.9 million tons of pulpwood to Smurfit-Stone's pulp and paper mill in Panama City, Fla., 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.

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, SVP of 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."


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