Hardly acquisition of DS Smith effective, International Paper (IP) has announced the closure of four production sites in the USA by the end of April 2025. The American group, which operates some 200 sites in the country, is thus cutting 674 jobs, or just over 1% of its global workforce.
800,000 tonnes less cardboard capacity
The closures affect the Red River paperboard mill in Louisiana, a recycling site in Arizona, a box plant in Pennsylvania and a converting unit in Missouri.
The closure of the Louisiana plant will reduce annual cartonboard production capacity by 800,000 tonnes.
A transformation process to become "stronger"
In its press release, International Paper, which is forecasting sales of $18.6 billion for 2024, justifies this decision by a desire to "embark on a transformation process to become a stronger group in sustainable packaging solutions".
He adds: "An essential step in this journey is to rationalize IP's footprint to focus investment on facilities that will best serve customers and accelerate strategic initiatives to improve quality, reliability and service delivery."
Several other paper mill divestments in progress
Last October, IP announced plans to divest its global cellulose fiber business (GCF), which specializes in the production of absorbent pulp for sanitary towels, textiles, building materials, paints and coatings. The GCF business generated sales of $2.9 billion in 2023 and is present in three countries, with eight plants and two converting facilities. The Group has also announced plans to close its pulp mill in Georgetown, South Carolina.
The acquisition of the British company DS Smith is also to be accompanied by the sale of five corrugated board plants in the European Union, three of which are located in France, and more specifically in Normandy, at the request of the European Commission.
