International Paper Company Streamlines Operations with Strategic Facility Closures

International Paper's Strategic Facility Closures: A Move Towards Streamlining Operations

International Paper Company, headquartered in Memphis, Tennessee, announces the permanent closure of several facilities as part of an overarching strategy to streamline operations. The affected sites include 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. All operations at these locations are set to cease by the end of April 2025. This decision results in a significant reduction of approximately 800,000 tons of containerboard capacity annually, impacting a workforce of 674 employees, consisting of 495 hourly workers and 179 salaried staff.

The closures reflect International Paper's commitment to refining its operational focus and enhancing customer service through targeted investments. Tom Hamic, the executive vice president and president of North American Packaging Solutions, highlights the difficult nature of these decisions but emphasizes the necessity for the company to concentrate resources on facilities that promise improved quality and reliability. To mitigate the impact on employees, the company plans to leverage attrition, retirements, and existing vacancies at other facilities. Additionally, International Paper aims to support its departing employees by offering outplacement assistance, mental health resources, and severance benefits where feasible.

This strategic shift aligns with International Paper's broader goals of maintaining a leadership role in sustainable packaging solutions. With net sales reported at $18.6 billion in 2024, and an ongoing transformative journey marked by the acquisition of DS Smith in 2025, the company is poised to enhance its market presence in both North America and EMEA. By streamlining operations and focusing on key facilities, International Paper aims to contribute positively to the market while ensuring a seamless transition for its workforce.

In addition to these operational changes, International Paper continues to emphasize its commitment to sustainability. The company's focus on innovative packaging solutions is designed to make the world safer and more productive, aligning with its mission to lead in the sustainable packaging sector.

As the company navigates this restructuring phase, it highlights its dedication to supporting employees affected by these closures, demonstrating an understanding of the human factors involved in such significant organizational changes.