International Paper closes US$360M North Pacific Paper deal

USA – International Paper has completed its US$360 million acquisition of North Pacific Paper Company, securing a Longview, Washington mill that produces one million tonnes of lightweight recycled containerboard annually to meet rising e-commerce and food delivery demand across the western United States.

The deal, first announced in April, adds 500 employees and three paper machines to International Paper’s North American network. 

Norpac specialises in lightweight recycled packaging paper, a segment where reducing material per box directly lowers shipping costs and carbon emissions. 

For an e-commerce company shipping millions of packages, shaving grams from each corrugated box translates into tonnes of annual material savings and lower dimensional weight charges from carriers.

A Strategic Fix for West Coast Supply Gaps

International Paper has historically been stronger in the US South and Midwest, serving West Coast customers from distant plants with longer lead times and higher freight costs.

The Longview mill cuts delivery times to Pacific Northwest, California, and Southwest customers from days to hours. 

Containerboard demand has shifted as brick-and-mortar retail declines and direct-to-consumer shipping grows. 

A box that travels from Mississippi to Seattle spends days on a train; one from Longview spends hours on a truck. 

That speed difference determines whether an e-commerce customer receives their order in two days or five.

Leadership on the Integration

Craig Anneberg, Norpac’s outgoing CEO, noted that joining International Paper gives the Longview team a platform to build on what they have already created, while maintaining the mill’s role as a community anchor. 

Tom Hamic, president of International Paper’s North America Packaging Solutions, pointed out that Norpac’s lightweight grades are exactly what customers are demanding as they balance product protection with sustainability targets. 

The mill’s recycled content and lightweighting capabilities align with brand owner commitments to reduce packaging weight and increase recyclability.

A Year of Transformation

The Norpac closure follows International Paper’s acquisition of DS Smith last year and its ongoing plan to separate North American and EMEA operations into two independent public companies. 

The Longview mill will operate within the North American business, which includes assets from both International Paper and DS Smith. 

The US$360 million price tag, while not cheap, is modest compared to the cost of building a greenfield mill of equivalent capacity, which would exceed US$1 billion and take three years to bring online.

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