International Paper to shut down four USA plants by April 2025, Pactiv to close Michigan facility

USA – Sustainable packaging solutions provider International Paper (IP) has announced plans to shut down four of its USA facilities by April 2025 as part of an effort to streamline operations and focus on sustainable packaging solutions.

The move comes in response to weaker demand from e-commerce and consumer goods companies.

The closures will affect 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.

The closure of the Red River mill alone is expected to reduce IP’s annual containerboard capacity by approximately 800,000 tons.

A total of 674 employees—495 hourly and 179 salaried—will be impacted, representing about 1% of IP’s global workforce of over 65,000 employees.

The company, which operates in more than 30 countries, has committed to supporting affected employees through outplacement assistance, mental health resources, and, where possible, severance benefits.

It also plans to manage workforce reductions through attrition, retirements, and vacancies at other locations.

Tom Hamic, Executive Vice President and President of IP North American Packaging Solutions, acknowledged the difficulty of the decision, stating, “Closing any facility is a tough choice due to its impact on our team members, their families, and the surrounding communities. We appreciate their contributions and will do our best to support them.”

Last year, IP also announced the closure of its pulp and paper mill in Georgetown, South Carolina.

Pactiv Evergreen to shut down Michigan facility

Meanwhile, Pactiv Evergreen, a North American manufacturer of fresh food and beverage packaging, will close its Kalamazoo, Michigan, facility, which will affect 153 jobs.

Layoffs are set to begin in April 2025 and conclude by June. The company previously filed a Worker Adjustment and Retraining Notification with the state, confirming that job eliminations would be permanent.

Pactiv Evergreen operates another plant in Kalamazoo, which the closure will not impact. The two sites became part of the company in 2021 after it acquired Fabri-Kal, a food service and consumer packaging company.

In December 2024, Pactiv Evergreen agreed to merge with Novolex, a packaging company owned by Apollo Global Management, in an all-cash deal valued at US$6.7 billion.

The merger, expected to be completed by mid-2025, will strengthen the new entity’s position in the food, beverage, and specialty packaging sectors.

Novolex Chair and CEO Stan Bikulege will lead the combined company, which is backed by Apollo Funds and CPP Investments, each contributing approximately US$1 billion.

Pactiv Evergreen currently employs more than 14,000 people in 51 North American manufacturing facilities, has 1,100 product lines, and has 42 distribution centers.

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