Company to Exit Molded Fiber Business; Additional Facility Changes Planned
MEMPHIS, Tenn., June 26, 2025 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC), a global leader in sustainable packaging, today announced a series of strategic changes to strengthen its North American operations and better serve customers.
As part of this initiative, the company will:
- Exit the molded fiber business and convert the Reno, Nev. facility to support its packaging business
- Close its packaging facility in Marion, Ohio
- Close its recycling facility in Wichita, Kan.
- Sell its containerboard mill in Xalapa, Mexico and its recycling plants in Xalapa and Apodaca, Mexico to Acabados de Papeles Santinados y Absorbentes (APSA).
In the U.S., these changes will impact approximately 110 hourly and 24 salaried employees. In Mexico, APSA intends to retain current onsite team members at each location. International Paper is committed to minimizing the impact through job placement in existing vacancies, retirements and other internal opportunities. Affected employees will also receive severance and outplacement support where possible.
"These decisions are never easy because of the impact on our employees, their families and the communities in which we operate. We will assist employees and customers as much as possible through this transition," said Tom Hamic, executive vice president and president of IP's Packaging Solutions North America business. "While difficult, these decisions will help enable IP to prioritize the right geographies, customers and products and make investments in resources to support our growth in sustainable packaging."
These actions are intended to support International Paper's ongoing transformation initiatives to become a more focused and agile provider of sustainable packaging solutions. By streamlining operations, the company aims to make investments in facilities that are designed to enhance quality, reliability and service delivery.
About International Paper
International Paper (NYSE: IP; LSE: IPC) is the global leader in sustainable packaging solutions. With company headquarters in Memphis, Tennessee, USA, and EMEA (Europe, Middle East and Africa) headquarters in London, UK, we employ more than 65,000 team members and serve customers around the world with operations in more than 30 countries. Together with our customers, we make the world safer and more productive, one sustainable packaging solution at a time. Net sales for 2024 were $18.6 billion. In 2025, International Paper acquired DS Smith creating an industry leader focused on the attractive and growing North American and EMEA regions. Additional information can be found by visiting www.internationalpaper.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements reflect management's current views regarding planned operational changes, portfolio rationalization, and strategic actions designed to support long-term growth in North America. Forward-looking statements include, but are not limited to, the Company's expectations regarding facility closures, business exits, and the proposed sale of certain operations. These statements are subject to risks and uncertainties that could cause actual results and the timing of events to differ materially, including the risk that the Company may be unable to complete or fully realize the anticipated benefits of the strategic actions described herein. Additional risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ("SEC") on February 21, 2025, and subsequent reports filed with the SEC. The Company undertakes no obligation to publicly update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in expectations.
SOURCE International Paper
