International Paper to divest five corrugated plants in Europe amid regulatory commitments

EUROPE – International Paper (IP), a global provider of sustainable packaging solutions, has entered into exclusive negotiations with Germany’s PALM Group to sell five of its corrugated packaging plants in Europe.

The move follows an irrevocable offer from PALM and is tied to regulatory commitments related to IP’s recent acquisition of DS Smith.

Three of the five facilities are based in Normandy, France, including box plants in Saint-Amand and Mortagne, and a sheet plant in Cabourg.

The remaining two are located in Ovar, Portugal, and Bilbao, Spain. The sale’s completion remains subject to consultation with French works councils, employee information procedures, and the proposed buyer’s approval by the European Commission.

Once these steps are finalized, the parties expect to sign a definitive share purchase agreement. The transaction is anticipated to close by the end of Q2 2025.

“This divestiture has been our top priority since the DS Smith acquisition,” said Andy Silvernail, Chair and CEO of International Paper.

“We’re pleased to have found a strong and capable buyer in PALM, and we are grateful to the teams at these facilities for their dedication. We’re confident they will continue to thrive under new ownership.”

PALM Group, a privately held company headquartered in Aalen, Germany, specializes in containerboard, graphic paper, and corrugated packaging.

As of 2024, PALM operates five paper mills and 29 corrugated plants, with annual revenue of €2 billion (US$2.2bn).

The divestiture is part of a broader streamlining strategy by IP.

In February 2025, the company announced plans to shut down four U.S. facilities by the end of the month.

These include the Red River containerboard mill in Louisiana, an Arizona recycling plant, a Pennsylvania box plant, and a sheet feeder facility in Missouri.

The closure of the Red River mill alone will reduce IP’s annual containerboard capacity by approximately 800,000 tonnes.

In total, 674 employees will be affected, representing about 1% of IP’s global workforce.

IP has pledged to support impacted employees with severance benefits, outplacement services, and mental health resources, and will seek to reassign staff through attrition, retirements, and internal vacancies where possible.

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