Sustainable packaging solutions provider International Paper (IP) is set to shut down four of its US facilities by the end of April 2025.
The shutdown is a part of the company’s efforts to streamline its operations and focus on sustainable packaging solutions. It will help the company address weaker demand for packaging from e-commerce and consumer goods companies.
The closures will affect the Red River containerboard mill in Campti, Louisiana, a recycling plant in Phoenix, Arizona, a box plant in Hazleton, Pennsylvania, and a sheet feeder facility in St. Louis, Missouri.
The closure of the Red River containerboard mill is expected to reduce IP’s annual containerboard capacity by approximately 800,000 tons.
The company said a total of 495 hourly and 179 salaried employees will be impacted by these closures, which forms approximately 1% of its global workforce, reported Reuters. IP has over 65,000 employees and operates in more than 30 countries, serving customers worldwide.
IP Paper has committed to minimising the impact on affected employees by offering support such as outplacement assistance, mental health support resources, and, where possible, severance benefits.
It plans to manage the transition by leveraging attrition, retirements, and current vacancies at other IP locations.
IP North American packaging solutions executive vice-president and president Tom Hamic said: “The decision to close any facility is difficult because of the impact on our team members, their families and the surrounding communities.
“We greatly appreciate the contributions from our departing team members and will do all we can to support them.”
Last year, the company announced the closure of its pulp and paper mill in Georgetown, South Carolina.
Earlier this month, IP formally acquired DS Smith, a British multinational packaging business, in a $7.23bn deal.
In 2024, IP reported net earnings of $557m, or $1.57 per diluted share, and adjusted operating earnings of $400m, or $1.13 per diluted share. Full-year net sales reached $18.6bn for the period.
