International Paper announces strategic changes in North America packaging division

International Paper has launched a series of strategic changes in its North America packaging operations aimed at strengthening its cost position, improving customer experience, and consolidating market leadership.

The company will invest $250 million to convert machine #16 at its Riverdale mill in Selma, Alabama, to produce containerboard. At the same time, three facilities in Georgia — Savannah, Riceboro, and the Savannah packaging facility — will be permanently closed, affecting approximately 1,100 employees. The company will provide severance packages and outplacement support for impacted employees.

Tom Hamic, Executive Vice President and President of North America Packaging Solutions, stated, “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”.

The Riverdale machine conversion is expected to be completed by Q3 2026. The closures in Riceboro and Savannah will occur in phases through the end of September 2025, resulting in an approximate reduction of one million tons in the company’s annual containerboard capacity.