International Paper announces more closures, will exit molded fiber business

Last week, International Paper (IP) revealed a series of what it says are “strategic changes” to strengthen its North American operations.

As part of that strategy, the Memphis, Tennessee-based paper packaging company will:

• exit the molded fiber business and convert its facility in Reno, Nevada, to support its packaging business;
• close its packaging facility in Marion, Ohio;
• close its recycling facility in Wichita, Kansas; and
• sell its containerboard mill in Xalapa, Mexico, and its recycling facilities in Xalapa and Apodaca, Mexico, to Acabados de Papeles Santinados y Absorbentes (APSA).

RELATED: International Paper to close 5 packaging sites in UK

"These decisions are never easy because of the impact on our employees, their families and the communities in which we operate,” says Tom Hamic, executive vice president and president of IP's Packaging Solutions North America business.

“We will assist employees and customers as much as possible through this transition," Hamic says. "While difficult, these decisions will help enable IP to prioritize the right geographies, customers and products and make investments in resources to support our growth in sustainable packaging.”

In the U.S., the changes will affect approximately 110 hourly and 24 salaried employees, while in Mexico, APSA intends to retain current on-site employees at each location, according to IP.

Details on the timeline of the closure of the Marion site were not immediately available, but IP has indicated it plans to cease all operations at the Wichita recycling site on or before July 31.

“These actions are intended to support International Paper's ongoing transformation initiatives to become a more focused and agile provider of sustainable packaging solutions,” the company says in a news release. “By streamlining operations, the company aims to make investments in facilities that are designed to enhance quality, reliability and service delivery.”

These moves are the latest in a string of IP closures announced this year.

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In February, the company revealed plans to permanently close four facilities, affecting 674 employees. Those sites include its Red River containerboard mill in Campti, Louisiana; a recycling facility in Phoenix; a box plant in Hazleton, Pennsylvania; and a sheet feeder facility in St. Louis.