{"id":8881,"date":"2025-08-22T03:57:15","date_gmt":"2025-08-22T07:57:15","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=8881"},"modified":"2025-08-22T03:57:15","modified_gmt":"2025-08-22T07:57:15","slug":"international-paper-restructures-to-streamline-operations","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=8881","title":{"rendered":"International Paper restructures to streamline operations"},"content":{"rendered":"


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The Riverdale mill conversion is set for completion by Q3 2026. Credit: FOTOGRIN\/Shutterstock.com.<\/figcaption><\/figure>\n<\/p><\/div>\n

Sustainable packaging solutions provider International Paper will undergo a series of strategic changes as part of its ongoing transformation process to improve the customer experience and supply chain.<\/p>\n

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The company has signed a definitive agreement to sell its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP) for $1.5bn, with additional closing adjustments.<\/p>\n

The sale is part of International Paper\u2019s strategy to focus on sustainable packaging solutions.<\/p>\n

The GCF business, employing 3,300 people across nine manufacturing facilities and eight regional offices, generated $2.8bn in revenue in 2024. It produces pulp for various applications, including personal care products and construction materials.<\/p>\n

The transaction is anticipated to conclude by the end of the year, pending regulatory approvals.<\/p>\n

AIP partner Rick Hoffman said: \u201cGCF 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.\u201d<\/p>\n

Furthermore, International Paper is restructuring its North American packaging business to improve its service and manufacturing footprint.<\/p>\n

The company is investing $250m to convert the #16 machine at the Riverdale mill in Selma, Alabama, to produce containerboard.<\/p>\n

Concurrently, it will permanently close several facilities in Georgia, affecting around 1,100 hourly and salaried positions.<\/p>\n

The Riverdale mill conversion is set for completion by the third quarter (Q3) of 2026 while the phased shutdown of the Riceboro and Savannah mills in Georgia will occur by the end of next month.<\/p>\n

International Paper North America packaging solutions business executive vice-president and president Tom Hamic said: \u201cWhile 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.<\/p>\n

\u201cOur investment in the Riverdale mill reflects our commitment to delivering high-quality, reliable service while strengthening our advantaged cost position.\u201d<\/p>\n

These changes will lead to a net reduction in the company\u2019s annual containerboard capacity by approximately one million tonnes.<\/p>\n

This July, International Paper completed the divestiture of five European plants<\/a> to PALM Group.<\/p>\n

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