Changes at IP appear good for Carter Holt

By PAM GRAHAM

The promotion of John Faraci at International Paper is seen as good news for both Carter Holt Harvey and its former chief executive Chris Liddell.

Faraci, 53, has been promoted from vice-president and chief financial officer of IP, the world's largest paper and forest products company and 50.5 per cent owner of Carter Holt, to president and elected to the board.

That leaves him well placed to replace chief executive officer and chairman John Dillon at the top later this year and has raised speculation that Liddell, who moved to the US in December, will get the chief financial officer's job vacated by Faraci, according to David Stanley, Macquarie Equities' head of research.

Dillon is required to step down when he is 65 in September.

IP's statement in the US said Faraci would assume responsibility for the operations of the company in the new role and would continue to report to Dillon.

"I think it is good for New Zealand in so far as both John Faraci and Chris Liddell have both previously been with Carter Holt Harvey," Stanley said.

IP bought into Carter Holt from the early 1990s to gain access to fast-growing forests and the Asian markets and gain experience outside North America needed to become a global company, Liddell said in an interview this month.

Faraci was CEO of Carter Holt Harvey from November 1995 to May 1999.

"Carter Holt is a better company today for having had IP as a shareholder," said Stanley.

It plugged into the technical knowledge at head office and has developed local managers. Of its top 30 executives only one is now an American.

Over time, IP has become more focused on the return of capital and has become a global business. Fifteen years ago, despite its name, it was a US company with a few small businesses in Europe.

"It will be great for us to have someone at the helm of IP with such a strong understanding of our business and its opportunities," said Peter Springford, who has an MBA from Dunedin and led IP's push into China before returning to replace Liddell.