International Paper (IP), a global sustainable packaging company, has revealed strategic changes to improve customer service in North America and strengthen its operations across the region.
These changes involve exiting certain businesses and reallocating resources.
Specifically, the company will exit the moulded fibre business and repurpose its Reno, Nevada, facility for packaging, as part of restructuring.
It will also close its packaging facility in Marion, Ohio. Additionally, its recycling facility in Wichita, Kansas, will be shut down.
IP will sell its containerboard mill in Xalapa, Mexico, to Acabados de Papeles Santinados y Absorbentes (APSA). The sale includes recycling plants in Xalapa and Apodaca.
APSA plans to retain current employees at these locations.
In the US, approximately 110 hourly and 24 salaried employees will be affected by the changes.
IP says it is committed to minimising the impact on these employees through job placement, severance, and outplacement services where feasible.
These changes align with International Paper’s transformation to become a more focused provider by improving quality, reliability, and service delivery at its facilities.
IP Packaging Solutions North America business executive vice-president and president Tom Hamic said: “These decisions are never easy because of the impact on our employees, their families and the communities in which we operate.
“We will assist employees and customers as much as possible through this transition.
“While difficult, these decisions will help enable IP to prioritise the right geographies, customers and products and make investments in resources to support our growth in sustainable packaging.”
Earlier this month, IP unveiled plans to establish a new facility in Salt Lake City, Utah, US.
