International Paper Announces Strategic Changes-Sale, Conversion and Shut Downs

International Paper has reached a definitive agreement with American Industrial Partners (AIP) to sell its Global Cellulose Fibers (GCF) business for $1.5 billion, subject to closing adjustments, including the issuance of preferred stock with an aggregate initial liquidation preference of $190 million. The Company previously announced the decision to review strategic alternatives for its GCF business last fall, as part of the Company’s strategy to focus on sustainable packaging solutions. The transaction is expected to close by the end of the year, subject to regulatory approvals. 

The GCF business creates safe, high-quality pulp for a wide range of applications like towel and tissue products, diapers, feminine care, incontinence and other personal care products that promote health and wellness. In addition, its specialty pulp serves as a sustainable raw material used in construction materials, paints, coatings and more. GCF generated $2.8 billion in revenue in 2024 and has 3,300 employees globally, with nine manufacturing facilities and eight regional offices.

Strategic changes to Packaging Solutions business in North America
International Paper’s packaging business in North America has initiated a number of actions to enhance its ability to serve and grow with customers while improving its manufacturing footprint, including:

  • Investment of $250 million to convert the #16 machine at the Riverdale mill in Selma, Ala. to produce containerboard
  • The permanent closure of the Savannah, Ga. containerboard mill, the Savannah, Ga. packaging facility, Riceboro containerboard mill and Riceboro Timber and Lumber

These changes will impact approximately 1,100 hourly and salaried positions. International Paper is committed to supporting affected employees through this transition.

The Riverdale conversion is expected to be completed by the third quarter of 2026. The Riceboro and Savannah mills will shut down in phases by the end of September 2025, and the Savannah packaging facility will also cease operations by the end of September. These combined changes will result in a net reduction of the company’s annual containerboard capacity by approximately one million tons

International Paper | International Paper Announces Strategic Changes

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