International Paper shuts 4 US plants, simultaneously invests US$225M in Mississippi facility

USA – International Paper has announced the closure of four North American facilities by the end of Q3 2026, affecting 330 employees, as part of a strategic network optimisation effort while simultaneously investing US$225 million in a new Mississippi packaging plant.

The closures include a sheet plant in Aurora, Illinois (41 employees), converting plants in Elk Grove, California (136 employees) and Barrington, New Jersey (133 employees), along with preprint operations in Richwood, Kentucky (20 employees). 

International Paper North America packaging solutions executive vice-president Tom Hamic stated that these are difficult but necessary decisions that strengthen the network, focus investments where they create the greatest value and position the company to better serve customers and compete for the long term. 

Affected employees will receive outplacement support, severance and benefits, with impacted customers transitioned to alternative regional facilities.

How Network Optimisation and $225M Mississippi Investment Align with Long-Term Growth Strategy

The closures follow International Paper’s ongoing transformation under CEO Andy Silvernail, with more than 5,800 employees affected by facility announcements since October 2024.

Earlier this year, the company closed packaging plants in Compton, California (125 employees) and Louisville, Kentucky (93 employees). 

In 2025, it also shut down the Red River containerboard mill in Campti, Louisiana; a recycling plant in Phoenix, Arizona; a box plant in Hazleton, Pennsylvania; and a sheet feeder facility in St. Louis, Missouri.

Simultaneously, the company broke ground on a US$225 million, 468,000ft² corrugated packaging facility in Rankin County, Mississippi, expected to begin operations in Q4 2027.

Keith Townsend, IP group vice-president, said the Mississippi investment supports the company’s strategy to optimise its box plant system and focus capital where it drives the greatest return, strengthening service capabilities and product quality across the Mid-South region.

What the Restructuring Means for Sustainable Packaging Customers and Employees

The latest downsizing efforts are intended to streamline International Paper’s operating network and direct spending towards “highest-value” areas while improving its cost base.

The company’s broader strategy includes a planned split into two independent companies, with North American operations remaining under International Paper while EMEA packaging businesses form a separate entity. 

Employees affected by the changes will receive severance packages, continued benefits and outplacement support to assist with their transition. 

The company expects to transition affected customers to other facilities within each region to ensure continuity of supply.

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