International Paper to close 2 Georgia mills, cut 1,100 jobs
[August 22, 2025] SAVANNAH,
Ga. (AP) — International Paper Co. said Thursday that it would close two
Georgia paper mills, including one that has been a cornerstone of
Savannah's economy for 90 years.
The company, based in Memphis, Tennessee, said it would stop making
cardboard in Savannah and Riceboro by the end of September. The company
will lay off about 800 employees in Savannah and about 300 employees in
Riceboro, according to company statements and filings with state
regulators.
The announcement came on the same day that the company said it would
sell its pulp division to private equity firm American Industrial
Partners for $1.5 billion. International Paper had previously announced
it would consider a sale to focus the company solely on its packaging
business. The sale is expected to close by the end of the year.
International Paper also said it would spend $250 million to expand
production of cardboard at a mill in Selma, Alabama.
International Paper will take a $700 to $900 million accounting charge
to reflect the reduced value of the cellulose fiber business. The pulp
is used in towels, tissues and as absorbent filler in diapers and other
personal care items. Some specialty pulp is also used in construction
materials and paints.
Closing the two mills will reduce International Paper's capacity to make
containerboard by 1.43 million tons (1.30 million metric tonnes). The
company will write down the assets of the two mills by $570 million and
expects to spend $158 million on severance payments and other closure
costs.
The company says its trying to increase sales and profit by simplifying
operations. International Paper has said that it's the largest maker of
containerboard in North America, but that's it's trying to reverse a
trend of decreasing profits and market share.
[to top of second column] |
 “While difficult, these decisions
are essential to positioning International Paper for long-term
success, enabling us to focus on the geographies, customers, and
products where we can create the most value,” Executive Vice
President Tom Hamic said in a statement.
Earlier this year, International Paper closed a
mill in Campti, Louisiana, laying off 470 people. Last year, the
company closed a 675-worker mill in Georgetown, South Carolina.
The Savannah mill was built in the mid-1930s by what was then Union
Bag and Paper, with jobs helping to ease the impact of the Great
Depression on the coastal city. The mill in Riceboro, south of
Savannah, opened in 1968 and was acquired by International Paper
when it bought British papermaker DS Smith earlier this year.
Savannah Mayor Van Johnson said he was “devastated and disappointed”
by the decision. Savannah Economic Development Authority CEO Trip
Tollison called it a “terribly sad day for Savannah.”
Georgia state House Speaker Jon Burns, a Newington Republican whose
family has long worked in timber growing and logging, said effects
would ripple beyond millworkers to loggers and timberland owners.
“These mill closures will undoubtedly deal a devastating blow not
only to Georgia’s timber industry but to the economic fabric of the
entire southeast Georgia region,” Burns said in a statement.
All contents © copyright 2025 Associated Press. All rights reserved
 |
