International Paper unveils North American restructuring strategy to enhance operational focus

NORTH AMERICA – International Paper (IP), a global leader in sustainable fiber-based packaging and pulp products, has announced a sweeping restructuring initiative aimed at sharpening its operational focus and improving customer service across North America.

The move, which involves a series of facility closures, business exits, and asset reallocation, reflects the company’s strategic shift towards a more streamlined, performance-driven future.

Central to the restructuring plan is IP’s decision to exit the moulded fibre business and repurpose its Reno, Nevada facility to support its core packaging operations.

Additionally, the company will shutter its packaging facility in Marion, Ohio, and close a recycling facility in Wichita, Kansas.

In a parallel move, IP will divest its containerboard mill in Xalapa, Mexico, along with associated recycling plants in Xalapa and Apodaca.

These assets will be sold to Mexico-based Acabados de Papeles Santinados y Absorbentes (APSA), which has committed to retaining current employees at those locations.

In the United States, the restructuring will affect approximately 134 employees—110 hourly and 24 salaried.

International Paper has pledged to ease the transition by offering severance packages, job placement assistance, and outplacement services where possible.

“These decisions are never easy because of the impact on our employees, their families and the communities in which we operate,” said Tom Hamic, Executive Vice President and President of IP Packaging Solutions North America.

“However, they are necessary to position International Paper for long-term growth by focusing on the right geographies, customers and product lines.”

This move is consistent with IP’s broader transformation strategy. Earlier in June, the company announced its plan to open a new packaging facility in Salt Lake City, Utah, aimed at expanding capacity and serving the growing demand in the Western US market.

This is not the first time IP has restructured its operations to improve efficiency and market alignment.

In 2021, the company spun off its printing papers business to form Sylvamo Corporation, focusing its core efforts on industrial packaging.

Similarly, in 2018, IP divested its consumer packaging division to Graphic Packaging Holding Company, narrowing its focus to containerboard and corrugated packaging.

Together, these initiatives reflect International Paper’s continued push toward operational excellence and sustainable growth, aligning its resources with evolving customer needs and market dynamics.

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