International Paper has announced extensive strategic changes. The company is selling its pulp fibre business to the US investor American Industrial Partners and is also investing USD 250 million in the modernisation of the Riverdale mill in Selma, Alabama. At the same time, the mills in Riceboro and Savannah (Georgia) as well as a packaging plant in Savannah will be closed.
The sale of the Global Cellulose Fibers (GCF) business unit to American Industrial Partners has a volume of USD 1.5 billion and is expected to be completed by the end of 2025, subject to regulatory approvals, according to the company. GCF generated sales of around USD 2.8 billion in 2024 and employs around 3,300 people worldwide.
Reorganisation in the packaging business North America
In the Packaging Solutions segment in North America, International Paper is focusing on reorganising its capacities. The centrepiece is the conversion of machine no. 16 at the Riverdale mill, which will produce containerboard in future. The investment totalling USD 250 million is scheduled to be completed by the third quarter of 2026.
On the other hand, there are closures: The containerboard plant and the timber and lumber plant in Riceboro as well as the containerboard and packaging plant in Savannah will be closed by the end of September 2025. In total, around 1,100 employees will be affected by these measures. International Paper has announced that it will offer severance programmes and support with career reorientation.
CEO Andy Silvernail emphasised that the sale of the pulp business underlines the strategic focus on sustainable packaging solutions. Tom Hamic, President of the North American business, explained that the measures were necessary to put International Paper in a strong competitive position in the long term.
Source: International Paper
