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International Paper (IP) revealed plans this week to close four facilities in Georgia, resulting in about 1,100 job cuts as part of the Memphis, Tennessee-based company’s continued streamlining efforts.
As part of these efforts, IP will close its containerboard mill and packaging facility in Savannah as well as a containerboard mill and a timber and lumber facility in Riceboro.
According to IP, the Savannah and Riceboro containerboard mills will be shut down in phases and will be permanently closed by the end of September, along with the Savannah packaging facility.
The combined closures will reduce IP’s annual containerboard capacity by about 1 million tons.
"We understand how deeply these decisions affect our employees, their loved ones, and the surrounding communities," says Tom Hamic, executive vice president and president of IP’s North America Packaging Solutions business. "We are committed to supporting both our employees and customers as we navigate this transition."
Along with the closures, IP also announced plans to invest $250 million to convert its No. 16 paper machine at its Riverdale mill in Selma, Alabama, to produce containerboard. The conversion is expected to be completed by the third quarter of 2026.
The closure announcements are the latest in IP’s ongoing streamlining efforts in North America.
In February, the company revealed plans to shutter its Red River containerboard mill in Campti, Louisiana, as well as a recycling facility in Phoenix, a sheet feeder facility in St. Louis and a box plant in Hazleton, Pennsylvania.
Then, in June, IP announced it would exit the molded fiber business, close a packaging facility in Marion, Ohio, and a recycling facility in Wichita, Kansas, as well as sell a containerboard mill and recycling facilities in Mexico.
These closures have resulted in thousands of job cuts.
"While difficult, these decisions are essential to positioning International Paper for long-term success, enabling us to focus on the geographies, customers and products where we can create the most value," Hamic says. "Our investment in the Riverdale mill reflects our commitment to delivering high-quality, reliable service while strengthening our advantaged cost position."
Global cellulose business
Along with the closures, IP also has reached an agreement to sell its Global Cellulose Fibers (GCF) business to New York City-based American Industrial Partners in a deal worth about $1.5 billion.
The transaction is expected to close by the end of the year pending regulatory approvals.
"GCF is a strong business and I'm pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses," IP CEO Andy Silvernail says. "Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio. These actions, combined with its talented and committed team made it an attractive investment for AIP to enter the pulp market and have positioned GCF for long-term success under new ownership."
IP’s GCF business generated about $2.8 billion in revenue last year and has 3,300 employees globally with nine manufacturing sites and eight regional offices. It creates pulp for applications like towel and tissue products and other personal care products.
"GCF is well-positioned for future growth, supported by its large and sustainable wood basket, durable end markets, industry leading quality and innovation, long-term customer relationships, deeply knowledgeable employees and well-invested facilities," says Rick Hoffman, partner at AIP. "We look forward to partnering with GCF Senior Vice President Clay Ellis and the rest of the talented and tenured management team to implement their growth vision."