WASHINGTON (dpa-AFX) - International Paper (IP) said it will close two U.S. packaging plants by January as part of a broader effort to cut costs and consolidate operations amid weak demand.
The affected facilities, located in Compton, California, and Louisville, Kentucky, will impact 218 employees, with production shifting to nearby sites. The company said it plans to reduce the impact on workers by relying on attrition, retirements, and open roles in other locations.
The move follows a series of portfolio changes this year. After acquiring UK-based DS Smith, International Paper sold its global cellulose fibers business in August for $1.5 billion to sharpen its focus on sustainable packaging. The company also reported a quarterly loss in October following a $1 billion impairment charge tied to that divestiture.
International Paper, the world's largest packaging company by revenue, has been closing underperforming plants and raising prices as the broader sector deals with softer demand, higher costs, and tariffs introduced during the Trump administration.
IP currently trades at $37.07, or 0.96% lower on the NYSE.
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