International Paper sells cellulose unit, cuts jobs in major restructuring

USA – International Paper, a leading sustainable packaging solutions provider, is implementing significant changes to its North American operations, according to a recent announcement. 

The company has agreed to sell its Global Cellulose Fibers (GCF) business to American Industrial Partners for US$1.5 billion, with additional closing adjustments. 

The transaction, expected to close by the end of 2025 pending regulatory approvals, involves a business that generated US$2.8 billion in revenue in 2024. 

The GCF unit, employing 3,300 people across nine manufacturing facilities and eight regional offices in the U.S., Canada, and Poland, produces pulp for personal care products and construction materials.

In a statement, AIP partner Rick Hoffman expressed optimism about the acquisition, highlighting GCF’s strong market position due to its sustainable wood resources, quality, and innovation.

The sale is part of International Paper’s strategy to focus on sustainable packaging solutions.

Alongside the divestiture, International Paper is restructuring its North American packaging operations to enhance customer service and optimize its manufacturing footprint. 

The company is investing US$250 million to convert the #16 machine at its Riverdale mill in Selma, Alabama, to produce containerboard, with completion expected by the third quarter of 2026.

However, the restructuring includes closing several facilities in Georgia, including the Savannah containerboard mill, Savannah packaging facility, and Riceboro operations, by the end of September 2025. 

These closures will affect approximately 1,100 hourly and salaried employees. International Paper has committed to offering severance packages and outplacement assistance to support affected workers. 

Tom Hamic, executive vice president of International Paper’s North America packaging solutions business, acknowledged the difficulty of these decisions, noting their necessity for long-term success and improved service delivery.

The combined changes will reduce International Paper’s annual containerboard capacity by about one million tons. 

In July 2025, the company also completed the sale of five European plants to PALM Group for an undisclosed amount, further streamlining its operations.

A recent report indicates that International Paper’s acquisition of DS Smith for US$7.2 billion earlier in 2025 has expanded its presence in North America and Europe, complementing these restructuring efforts. 

The company, headquartered in Memphis, Tennessee, employs over 65,000 people and reported US$18.6 billion in net sales in 2024. 

These strategic moves aim to strengthen International Paper’s focus on sustainable packaging while addressing market challenges.

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