International Paper to close four more US packaging facilities
Key takeaways
- IP has ceased operations at four US facilities in Kentucky, Illinois, California, and New Jersey as part of its network optimization strategy.
- The company says the closures will help improve cost efficiency, capacity, reliability, and customer service across its packaging operations.
- The move follows several recent restructuring steps, including previous US site closures and acquisitions.
International Paper (IP) will cease operations at four of its US plants by the end of the third quarter of the year. The affected facilities include its preprint operations in Richwood, Kentucky, its sheet plant in Aurora, Illinois, as well as its converting plants in Elk Grove, California, and Barrington, New Jersey.
IP indicates that the decision is part of its ongoing strategy to improve its “cost position, increase capacity, and provide customers with high-quality, sustainable packaging solutions.”
“These are difficult but necessary decisions that strengthen our network, focus investments where they create the greatest value, and position IP to better serve customers and compete for the long term,” comments Tom Hamic, executive VP and president, Packaging Solutions North America at IP.
“We are grateful to the employees affected and are committed to supporting them through this transition and ensuring a seamless experience for our customers.”
The US pulp and paper company says it will support the impacted employees with outplacement assistance, severance, and benefits.
Maintaining customer service
IP aims to transition its affected customers to other facilities within each region to maintain a continuity of supply.
In January, IP announced its plans to split into two publicly traded companies, spinning off its EMEA Packaging business.
Last November, the company closed two other US packaging facilities in Compton, California, and Louisville, Kentucky. The company said the closures will improve its customer services by focusing investments in facilities that “best serve customers and accelerate strategic initiatives to improve quality, reliability, and service delivery.”
Also last year, IP merged with the UK’s paper giant DS Smith to “enhance offerings, increase innovation, and expand geographic reach.” The merger was followed by the acquisition of IP’s bag converting division by ProAmpac.
IP has also recently expanded its capabilities through the acquisition of North Pacific Paper Company, a US-based paper manufacturer, and Delmarva Corrugated Packaging, based in Delaware, US.
Meanwhile, the company is building a new factory in Rankin County, Mississippi, US, with the goal of strengthening its cost position and improving reliability, product quality, and service capabilities.
