International Paper to build multi-million Mississippi facility
Key takeaways
- International Paper will build a US$225 million facility in Mississippi, US, to strengthen its cost position and improve product quality and reliability.
- The new plant will replace older infrastructure with modern equipment, supporting long-term efficiency gains.
- Construction is set to begin in June 2026, with operations expected by late 2027, as part of IP’s broader strategy to optimize its manufacturing footprint.
International Paper (IP) is set to build a new facility in Rankin County, Mississippi, US, with the aim of strengthening the company’s cost position, improving reliability and product quality, along with enhancing service capabilities across the Mid-South region.
The plant aims to reduce structural costs and support growth in key market segments by replacing older infrastructure with new, modern equipment.
Keith Townsend, group vice president and general manager, IP North America Packaging Solutions East, says: “This investment supports our strategy to optimize our box plant system and focus capital where it drives the greatest return.”
“By modernizing our footprint in Mississippi, we are strengthening our service model and ability to provide customers with the highest quality sustainable packaging solutions.”
Long-term investment
The US$225 million project was given the green light by IP’s Board of Directors after a “comprehensive review” of its manufacturing footprint. The 468,000 square foot facility will be built less than 16 km from IP’s existing box plant in Richland.
Mississippi’s governor Tate Reeves says: “IP’s US$225 million investment in Rankin County is proof that Mississippi’s momentum is real and growing stronger every day.”
“We’re seeing historic levels of capital investment because companies know Mississippi is a state where businesses can succeed. This project will create new opportunities for Mississippians and continue our state’s record-breaking economic development success.”
Construction is expected to begin in June this year, with operations starting at the end of 2027. IP also explains that the modern equipment will increase safety and efficiency for employees, who are expected to transfer from the Richland facility after completion.
IP’s business shifts
The launch of the Mississippi facility is the latest in a series of business changes for IP in the last year.
In January 2025, it merged with DS Smith to establish a “global leader” in sustainable packaging solutions, with a regional focus on North America and EMEA. The combined packaging giant aims to accelerate growth, improve profitability, and serve customers globally.
Last November, IP announced the closure of its US packaging production sites in Compton, California, and Louisville, Kentucky.
“Making the decision to close a facility is incredibly difficult, especially knowing the impact it has on our team members and their families,” said Tom Hamic, executive vice president and president for North American Packaging Solutions at IP.
Most recently, it announced plans to split into two regional, publicly traded companies. As part of the separation, its EMEA Packaging business will be spun off to shareholders, while IP intends to retain a meaningful ownership stake in the new company.
