Dive Brief:
- International Paper late Friday announced plans for four closures across the United States by the end of the third quarter. It will close a sheet plant in Aurora, Illinois, along with converting plants in Elk Grove, California, and Barrington, New Jersey. It will also cease preprint operations at a facility in Richwood, Kentucky.
- The company said via email that a total of 330 employees are affected: 136 in California, 133 in New Jersey, 41 in Illinois and 20 in Kentucky. IP said in a news release that it will offer impacted employees outplacement assistance, severance and benefits.
- IP did not directly respond to a question about the specific reasons for closing these sites. It referenced language in the news release noting these are “strategic actions that aim to optimize its network, focus investments on the highest-value opportunities and better serve customers across North America.”
Dive Insight:
Since Andy Silvernail became CEO of International Paper two years ago, the company has implemented a turnaround strategy involving a slew of global facility closures and layoffs.
Including the new disclosures and hundreds announced earlier this year, more than 5,800 employees have been affected by the announcements since October 2024. In January, executives said they expected to close at least seven facilities and cut 700 jobs in Europe, the Middle East and Africa, and the company filed a notice with the state of Washington about closing a facility in Union Gap with 102 employees. In February, IP announced it would close a Georgetown, South Carolina, container plant, affecting 126 employees. During the April earnings call, executives said they were considering additional cuts in EMEA ahead of the company’s planned split into two companies next year.
Until now, the pace of IP’s downsizing disclosures in the second quarter had slowed since the Q1 announcements.
Executives had also announced their intention to accelerate various investments in the company’s network. That includes construction of a new $225 million box plant in Brandon, Mississippi, which IP expecs to open in late 2027. The company then plans to ramp down production at the nearby Richland plant and eventually close it.
In another expansion, IP closed its acquisition of North Pacific Paper Co. from One Rock Capital Partners for $360 million in early June.
Like its competitors, International Paper has had a bumpy few quarters amid challenging geopolitical and macroeconomic conditions, prompting executives in April to say they were lowering guidance for the year. Still, Silvernail noted that January was strong for the U.S. segment and demand improved, in part because of the industry’s nearly 10% production capacity cuts in North America announced in 2025 that were completed in Q1 2026. Competitors also have noted signs of sales volumes improvements early in 2026. International Paper will report second-quarter earnings on July 30.
