International Paper to close Texas packaging plant as network optimization continues

USA – International Paper has announced plans to close its Carrollton South packaging plant in Carrollton, Texas, by the end of the third quarter of 2026, as the company continues restructuring its North American manufacturing network to better align production capacity with customer demand.

The closure is part of the packaging giant’s ongoing strategy to optimize its industrial footprint while improving operational efficiency across its corrugated packaging business.

According to the company, regular reviews of its manufacturing network help determine the most effective deployment of resources to meet customer needs and strengthen the long-term competitiveness of its packaging operations.

Keith Townsend, Group Vice President, North America Packaging East at International Paper, acknowledged the impact of the decision on employees and the local community.

“Decisions that affect our people and our communities are never made lightly. We’re committed to supporting our Carrollton South team members throughout this transition,” Townsend said.

He added that customers currently served by the Carrollton South facility will continue to receive products from other International Paper plants within the region, ensuring continuity of supply.

Employees affected by the closure will receive severance packages, continued benefits and outplacement services to support their transition.

The Texas shutdown marks the latest in a series of facility rationalizations undertaken by the company over the past two years.

In June, International Paper announced plans to close its sheet plant in Aurora, Illinois, preprint operations in Richwood, Kentucky, and converting facilities in Elk Grove, California, and Barrington, New Jersey.

Earlier in 2026, the company also ceased operations at packaging plants in Compton, California, and Louisville, Kentucky, affecting a combined 218 employees.

During 2025, International Paper shuttered its Red River containerboard mill in Campti, Louisiana, alongside facilities in Phoenix, Arizona, Hazleton, Pennsylvania and St. Louis, Missouri.

Despite reducing capacity in older facilities, International Paper continues to invest in strategically located, modern manufacturing assets.

In May, the company broke ground on a new US$225 million corrugated packaging plant in Rankin County, Mississippi, aimed at enhancing production efficiency and serving growing demand across the southeastern United States.

The company’s restructuring reflects a broader trend across the packaging industry, where manufacturers are consolidating production into larger, more technologically advanced facilities capable of delivering greater efficiency, automation and sustainability.

Rising operating costs, changing regional demand patterns and increasing investment in high-performance packaging technologies are prompting major producers to streamline legacy operations while expanding capacity in strategically important markets.

As demand for corrugated packaging continues to evolve alongside e-commerce growth and changing supply chain requirements, packaging manufacturers are increasingly balancing network optimization with targeted investments that strengthen long-term competitiveness and customer service.

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