Kraton and International Paper Execute Strategic Continuity of Services Agreement

Rhea-AI Summary

Kraton Corporation and International Paper (NYSE:IP) have executed strategic agreements to maintain uninterrupted site services at Kraton's Savannah, Georgia facility. The partnership ensures continuity of essential services from International Paper, enabling Kraton to maintain production of critical pine chemical products while investing in future infrastructure.

The agreement demonstrates both companies' commitment to supply reliability and operational continuity in the pine chemicals industry. Kraton will continue investing in its Savannah facility to enable long-term independent operations, while International Paper reaffirms its position as a long-term partner in the pine chemicals market.

Positive

• Agreement ensures operational continuity for Kraton's pine chemicals production
• Strategic partnership maintains essential site services without disruption
• Enables Kraton to invest in future infrastructure while maintaining current operations

Negative

• None.

Insights

Industrial Supply Chain Analyst

IP secures stable revenue stream by extending its site services agreement with Kraton, reinforcing both companies' pine chemicals market positions.

This strategic agreement between International Paper (IP) and Kraton Corporation represents a significant operational partnership that solidifies IP's position in the pine chemicals supply chain. The deal ensures IP will continue providing essential site services to Kraton's Savannah, Georgia facility, creating a stable revenue stream while Kraton invests in infrastructure for eventual independent operations.

The arrangement has dual strategic importance. For IP, it extends a valuable service relationship with a major industry player while maintaining its footprint in the pine chemicals market. This aligns with IP's broader strategy to diversify revenue sources beyond traditional paper products. For Kraton, it ensures operational continuity during its transition toward infrastructure independence.

What's particularly noteworthy is the language indicating this as a bridge arrangement - Kraton clearly signals its intention to invest in capabilities for independent operations in the future. This suggests IP is securing revenue now while potentially preparing for an eventual service relationship restructuring.

The agreement demonstrates how strategic partnerships in specialized industrial settings can create mutually beneficial arrangements that support supply chain stability. For investors in International Paper, this represents a positive short-term revenue assurance in its specialty chemicals segment, though with acknowledgment of potential long-term changes as Kraton develops its independent capabilities.

HOUSTON, Aug. 21, 2025 /PRNewswire/ -- Kraton Corporation, a leading global producer of specialty polymers and high-value biobased products derived from pine chemicals, today announced the execution of agreements with International Paper, a global leader in sustainable packaging solutions, to maintain uninterrupted site services at Kraton's Savannah, Georgia facility. These agreements underscore the companies' shared commitment to ensuring supply reliability, operational continuity, and support for the long-term health of the pine chemicals industry.

International Paper will continue providing essential site services to Kraton, enabling uninterrupted production and delivery of critical pine chemical products. The arrangement supports Kraton's efforts to sustain operations without disruption while it invests in future infrastructure at the Savannah facility. These investments are designed to enable long-term independent operations and reinforce Kraton's strategic focus on resilience and growth.

"Securing this agreement reinforces our unwavering commitment to our customers and the pine chemicals industry," said Minco van Breevoort, President of Kraton Pine Chemicals. "It's business as usual. Our teams are fully aligned to ensure reliable operations, and this agreement provides continuity of supply to pine chemical markets as we invest in our long-term capabilities."

The partnership reflects a shared vision between Kraton and International Paper to strengthen the pine chemicals value chain and ensure stable supply to customers across key global markets.

"We are pleased to renew and extend our partnership with Kraton," said Chris Roeder, Vice President and General Manager, Pine Chemicals and Low Carbon Solutions at International Paper. "This arrangement confirms our long-standing relationship with Kraton and our commitment to being a reliable, long-term partner to Kraton and participant in the pine chemicals markets for years to come."

Kraton remains focused on delivering high-performance, sustainable solutions for its customers worldwide and continuing its leadership in the bio-based chemical industry.

For more information about Kraton, please visit www.KRATON.com.

About Kraton Corporation
Kraton Corporation is a leading global producer of specialty polymers and high-value performance products derived from renewable resources. Kraton's polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants, and lubricants, and medical, packaging, automotive, paving and roofing products. As the largest global provider in the pine chemicals industry, the company's pine-based specialty products are sold into adhesive, road and construction and tire markets, and it produces and sells a broad range of performance chemicals into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, and mining. Kraton offers its products to a diverse customer base in over 70 countries worldwide. 

*Kraton, the Kraton logo and design are all trademarks of Kraton Corporation, or its subsidiaries or affiliates, in one or more, but not all countries. 

About International Paper
International Paper (NYSE: IP; LSE: IPC) is the global leader in sustainable packaging solutions. With company headquarters in Memphis, Tennessee, USA, and EMEA (Europe, Middle East and Africa) headquarters in London, UK, we employ more than 65,000 team members and serve customers around the world with operations in more than 30 countries. Together with our customers, we make the world safer and more productive, one sustainable packaging solution at a time. Net sales for 2024 were $18.6 billion. In 2025, International Paper acquired DS Smith creating an industry leader focused on the attractive and growing North American and EMEA regions. Additional information can be found by visiting www.internationalpaper.com.

Media Contact: Amanda Lubow; T: (281) 504 4828

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SOURCE Kraton Corporation

FAQ

What is the strategic agreement between Kraton and International Paper (NYSE:IP)?

The agreement ensures International Paper will continue providing essential site services to Kraton's Savannah, Georgia facility, enabling uninterrupted production of pine chemical products.

How does the agreement affect Kraton's operations in Savannah?

The agreement allows Kraton to maintain uninterrupted production while investing in future infrastructure for long-term independent operations at the Savannah facility.

What is the purpose of International Paper's partnership with Kraton?

The partnership aims to strengthen the pine chemicals value chain and ensure stable supply to customers across key global markets while supporting operational continuity.

What are the long-term implications of the IP-Kraton agreement?

The agreement enables Kraton to invest in future infrastructure while maintaining current operations, and confirms International Paper's commitment as a long-term partner in the pine chemicals markets.