International Paper restructures UK, global operations amid acquisition and expansion

UK – International Paper, the US-based sustainable packaging giant, is undertaking a significant restructuring of its UK operations, announcing plans to close five packaging sites and cut approximately 300 jobs, according to Reuters.

The move comes just weeks after the company completed its US$7.2 billion acquisition of British packaging firm DS Smith.

Currently engaged in a consultation process with employees and trade unions, International Paper has not yet disclosed which specific UK sites will be affected.

However, the company stated that, in addition to the closures, one site may be relocated, another will transition from a seven-day to a five-day continuous operation, and minor job reductions are expected at two other facilities.

The restructuring is part of a broader strategic review aimed at consolidating the company’s footprint following its recent expansion. These operational changes in the UK are expected to be finalised by the end of 2025.

Despite the restructuring, International Paper has continued its financial commitments. Earlier this month, the company declared a quarterly dividend of US$0.4625 per share for the period from April 1 to June 30, 2025, to be paid on June 13 to shareholders of record as of May 23.

Headquartered in Memphis, Tennessee, International Paper operates in more than 30 countries and employs over 65,000 people worldwide.

Its Europe, Middle East, and Africa (EMEA) headquarters are based in London. In 2024, the company reported net sales of US$18.6 billion, with the DS Smith acquisition positioning it as a major player across both the North American and EMEA packaging markets.

Beyond the UK, International Paper is also implementing restructuring plans in the Rio Grande Valley in the US. As part of its strategic expansion, the company will convert its sheet plant in Edinburg, Texas, into a storage and distribution centre.

Concurrently, operations at its Reynosa facility in Mexico will be transferred to a new site currently under construction in the same region. Its McAllen, Texas, facility will be upgraded to strengthen operational efficiency.

The closure of both box and sheet plants in Edinburg is expected, though International Paper says it will mitigate the impact on employees through natural attrition, retirements, and reassignment to roles at other sites, including McAllen.

“We believe this shift will allow us to focus our efforts, provide excellent customer experiences and maintain a competitive cost structure that positions us for profitable growth,” said Tom Hamic, Executive Vice President and President of North America Packaging Solutions.

In a related development, International Paper initiated discussions in April with Germany’s PALM Group for the sale of five corrugated packaging plants in Europe.

This includes three sites in Normandy, France (Saint-Amand, Mortagne, and Cabourg), and two others in Ovar, Portugal, and Bilbao, Spain. The divestment is tied to regulatory requirements related to the DS Smith acquisition.

The dual strategy of acquisitions and operational streamlining signals International Paper’s broader goal of optimizing its global presence while aligning with market demand and regulatory compliance.

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