The actions will include a $250 million investment to convert the #16 machine at its Riverdale mill in Selma, Alabama, to produce containerboard.
This conversion is expected to be completed by the third quarter of 2026.
According to the Tennessee-based company, the closures form part of a wider strategy to “achieve an advantaged cost position, deliver a superior customer experience and maintain a high relative supply position as part of its ongoing transformation journey.”
Containerboard mills closing
Several sites in Georgia will permanently shut down, including:
- Savannah containerboard mill
- Savannah packaging facility
- Riceboro containerboard mill
- Riceboro Timber and Lumber
The Riceboro and Savannah mills and the Savannah packaging facility are scheduled to close in phases up until the end of September 2025.
These changes will reduce International Paper’s annual containerboard capacity by approximately one million tonnes.
IP said the moves were necessary to “position the company for long-term success” by focusing on geographies, customers and products where it can create the most value.
The closures will affect approximately 1,100 hourly and salaried positions.
Tom Hamic, Executive Vice President and President of International Paper’s North America Packaging Solutions business, said: “We understand how deeply these decisions affect our employees, their loved ones, and the surrounding communities.
“We are committed to supporting both our employees and customers as we navigate this transition.
“Our investment in the Riverdale mill reflects our commitment to delivering high-quality, reliable service while strengthening our advantaged cost position.”
Sale of Global Cellulose Fibers
The announcement comes alongside news that the company has signed a definitive agreement to sell its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP) for $1.5 billion (approximately £1.113 billion), subject to closing adjustments.
The GCF division produces pulp for a wide range of products, including tissue, diapers, feminine care and incontinence items, as well as specialty pulp for construction materials and coatings.
IP CEO Andy Silvernail said: “GCF is a strong business, and I’m pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses.”
Rick Hoffman, Partner at AIP, added: “GCF is well-positioned for future growth, supported by its large and sustainable wood basket, durable end markets, industry leading quality and innovation, long-term customer relationships, deeply knowledgeable employees, and well-invested facilities.”
IP completed the acquisition of packaging company DS Smith in January 2025.
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