No businesses will be sold to pay down borrowings, according to Jefferson Smurfit Corporation. The company has just completed an intensive strategic review of all its operations aimed at finding ways to improve efficiency and earnings.

Last night, a spokesman told The Irish Times that no business would be put on the market until alternative uses for the funds which would be raised through a sale had been identified. Reducing company debt through the sale of assets was not on the cards, he said.

Suitable uses for the funds which would be released through sales would have be identified before any sales took place, according to JS Corp. "Such an outlet has not yet been identified," a spokesman stressed. Market sources said that the company was looking for opportunities in the packaging sector.

JS Corp could raise up to $1.4 billion (£951 million) from asset sales, with some analysts forecasting its newsprint business and forests could be put on the market when suitable acquisition or consolidation opportunities are identified.

US market analysts said JS Corp is aiming to become a "purer packaging company". Packaging assets - corrugated boxes, folding cartons and labels - will become its core business.

If JS Corp is able to broaden the scope of its packaging activities and add value in this area, analysts said it could reduce the cyclical volatility of its earnings. The strategic review has been going on for three months. It involved identifying the company's most attractive business segments, finding ways to minimise the cyclical nature of its business and finding ways to outperform competitors.