Packaging giant International Paper exits molded fibre market and closes two US sites

Packaging Giant International Paper
Business

International Paper, a global leader in sustainable packaging, has announced a series of strategic changes to strengthen its North American operations and better serve customers.

As part of this initiative, the company will:

  • Exit the molded fibre business and convert the Reno, Nev. facility to support its packaging business
  • Close its packaging facility in Marion, Ohio
  • Close its recycling facility in Wichita, Kan.
  • Sell its containerboard mill in Xalapa, Mexico and its recycling plants in Xalapa and Apodaca, Mexico to Acabados de Papeles Santinados y Absorbentes (APSA).
Photo Courtesy of International Paper / Cision

In the U.S., these changes will impact approximately 110 hourly and 24 salaried employees. In Mexico, APSA intends to retain current onsite team members at each location. International Paper is committed to minimising the impact through job placement in existing vacancies, retirements and other internal opportunities. Affected employees will also receive severance and outplacement support where possible.

Tom Hamic, executive vice president and president of IP's Packaging Solutions North America business, said: These decisions are never easy because of the impact on our employees, their families and the communities in which we operate. We will assist employees and customers as much as possible through this transition. While difficult, these decisions will help enable IP to prioritise the right geographies, customers and products and make investments in resources to support our growth in sustainable packaging.

These actions are intended to support International Paper's ongoing transformation initiatives to become a more focused and agile provider of sustainable packaging solutions. By streamlining operations, the company aims to make investments in facilities that are designed to enhance quality, reliability and service delivery.

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