The global producer of packaging, pulp, and other fibre-based products said in a statement yesterday (18 October) that its actions – which will see production ceased on the #20 machine in Riegelwood, North Carolina, and the #4 machine in Pensacola, Florida as well as the mill closure in Orange – will “further strengthen and optimise its manufacturing system to meet customers’ needs”.
“Decisions like these are extremely difficult, because of the impact on our employees, their families and the communities in which we operate,” said chairman and CEO Mark Sutton.
“We are grateful to our employees in Orange, Riegelwood and Pensacola for their significant contributions to the company over the years. We are committed to providing severance benefits, outplacement assistance and more to help employees during this time.”
The company said that, in total, approximately 900 positions will be impacted but that wherever possible, the company’s goal “is to minimise the impact on employees by using current vacancies, retirements, normal attrition and other roles at International Paper”.
The permanent closure of the Orange mill will reduce the company’s containerboard capacity by approximately 800,000 tonnes. Its remaining containerboard mill system in North America will include 17 mills with an annual production capability of 13M tonnes.
The actions in Pensacola and Riegelwood will reduce the company’s pulp capacity by around 500,000 tonnes (300,000 tonnes of fluff pulp and 200,000 tonnes of southern bleached softwood). The company’s remaining pulp mill system will include eight mills with an annual production capability of 2.7M tonnes.
“We believe strongly in the attractive, long-term fundamentals of our businesses and these actions further strengthen our competitive platform,” said Sutton.
“Our optimised mill system, with its broad capabilities, gives us the flexibility to meet our customers’ needs today and in the future.”
International Paper said it expects the Orange mill and the #20 machine in Riegelwood to cease production by the end of the year. The #4 machine in Pensacola, meanwhile, is currently idled and will not resume production.
Headquartered in Memphis, Tennessee, International Paper employs around 39,000 staff globally and serves customers worldwide, with manufacturing operations in North America, Latin America, North Africa, and Europe. Its net sales for 2022 were $21.2bn (£17.5bn).
