#Sustainability #United States #International Paper #Red River #Campti

International Paper's Facility Closures and Future Directions

Overview
International Paper (NYSE: IP; LSE: IPC) has recently announced significant operational changes that will affect multiple facilities across the U.S. The company is set to permanently close its Red River containerboard mill in Campti, Louisiana, along with plants in Phoenix, Arizona; Hazleton, Pennsylvania; and St. Louis, Missouri by the end of April 2025. This decision is expected to reduce International Paper's containerboard capacity by approximately 800,000 tons annually, affecting a total of 674 employees (495 hourly and 179 salaried).

Impact on Employees
The closure of these facilities marks a critical point for the company and its workforce. International Paper plans to address the situation by leveraging attrition, retirements, and existing vacancies in other locations to minimize the impact on those laid off. Employees impacted by the closures will receive support including outplacement assistance and access to mental health resources, alongside possible severance benefits. Tom Hamic, Executive Vice President of North American Packaging Solutions, emphasized the challenges in making such decisions and reassured the commitment to support the departing team members.

Strategic Direction
This closure initiative is part of a broader transformation strategy aimed at positioning International Paper as a leader in sustainable packaging solutions. The company is focusing on streamlining its operational footprint to enhance the quality, reliability, and service delivery of their products. Tom Hamic has reiterated the company's dedication to improving its sustainability efforts, aligning operations to best serve customers while continuing to uphold its reputation as a global leader in packaging solutions.

Financial Insights
International Paper reported net sales reaching $18.6 billion for the fiscal year 2024, showcasing a robust performance despite the forthcoming challenges. Additionally, the company recently acquired DS Smith, further strengthening its position in the North American and EMEA packaging markets. This acquisition signifies a commitment to growth and adaptation in an evolving marketplace, ultimately enhancing their service capabilities and sustainability profile.

Conclusion
The announced facility closures present a significant turning point for International Paper. While these changes will impact hundreds of employees and the communities surrounding these plants, the company’s strategic initiatives aim to create a stronger, more sustainable operational framework. With a focus on enhancing service delivery and maintaining high standards, International Paper is positioning itself to adapt and thrive in an increasingly competitive landscape while committing to supporting its workforce during this transition. As the company moves forward, stakeholders will be monitoring the outcomes of these closures and the progress of its sustainability efforts closely.

About International Paper

Founded in Memphis, Tennessee, International Paper is a global leader in sustainable packaging solutions. With operations in over 30 countries and a workforce exceeding 65,000, the company remains focused on delivering innovative and sustainable solutions for its customers worldwide. Detailed information can be accessed through their official website: www.internationalpaper.com.

Forward-Looking Statements
This announcement contains forward-looking statements regarding the expected outcomes of the facility closures and other operational changes. While the company has strategies in place, actual results may vary due to uncertainties inherent in the business environment.