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4 days ago
- Business
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International Paper to exit molded fiber market, sell select Mexico sites
This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. International Paper on Thursday announced a slew of changes to its North American operations, including exiting the molded fiber market entirely and closing or selling multiple facilities. This is all part of IP's 'ongoing transformation' to sharpen its focus, according to the announcement. IP is making changes at the following U.S. sites, collectively impacting some 110 hourly and 24 salaried workers: Closing a packaging facility in Marion, Ohio, come Sept. 1, which an IP spokesperson said will affect 107 employees. IP's website lists its Marion site as a container plant. This capacity will be absorbed elsewhere in IP's network. Closing its recycling facility in Wichita, Kansas, come July 31, affecting 16 employees. This capacity will be eliminated. Converting a Reno, Nevada, facility that had been supporting its molded fiber business to instead support its packaging business. This change, happening on or before July 31, will affect 11 employees. This was IP's sole production site for its 'relatively small product line' in molded fiber, which included wine packaging systems, according to Amy Simpson, head of corporate communications and corporate marketing. 'Given the small market for this product, the decision was made to streamline our operations and focus investments on products and facilities that best meet our customers' needs,' she said in an email. The company is also immediately selling some assets in Mexico to Mexican packaging and materials company Acabados de Papeles Satinados y Absorbentes, or APSA. This includes one containerboard mill and one recycling plant in Xalapa, east of Mexico City near the shore, along with another recycling plant in Apodaca, near Monterrey, closer to Texas. RBC Capital Markets highlighted in a note to investors that International Paper acquired the Xalapa mill from forest products company Weyerhaeuser in 2008, estimating its capacity as 'relatively small,' between 25,000 and 30,000 metric tons per year. IP reported that APSA intends to retain current on-site staff. Following these sales, International Paper will still have numerous other facilities in Mexico. With all of these changes, IP said that it's 'committed to minimizing the impact through job placement in existing vacancies, retirements and other internal opportunities,' and that affected employees will receive severance and outplacement support where possible. 'While difficult, these decisions will help enable IP to prioritize the right geographies, customers and products and make investments in resources to support our growth in sustainable packaging,' said Tom Hamic, president of North American packaging solutions, in a statement. In a note to investors, Michael Roxland, Truist Securities senior paper and packaging analyst, called these decisions 'consistent with IP's 80/20 strategy to streamline its North American operations and optimize its box plant and mill footprint.' The 80/20 strategy, championed by CEO Andy Silvernail, embraces the idea that 80% of results come from 20% of efforts, inspiring a more focused approach. The company is aligning investments and resources to prioritize key customers and reduce complexity and cost. Other recent changes that IP has announced include restructuring its footprint along the U.S.-Mexico border, namely closing a box plant and sheet plant in Edinburg, Texas, and shifting some operations to Reynosa, Mexico. Earlier this year, the company also announced facility closures in Arizona, Louisiana, Missouri and Pennsylvania. Recommended Reading International Paper to restructure footprint along US-Mexico border Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
International Paper unveils restructuring for North American operations
International Paper (IP), a global sustainable packaging company, has revealed strategic changes to improve customer service in North America and strengthen its operations across the region. These changes involve exiting certain businesses and reallocating resources. Specifically, the company will exit the moulded fibre business and repurpose its Reno, Nevada, facility for packaging, as part of restructuring. It will also close its packaging facility in Marion, Ohio. Additionally, its recycling facility in Wichita, Kansas, will be shut down. IP will sell its containerboard mill in Xalapa, Mexico, to Acabados de Papeles Santinados y Absorbentes (APSA). The sale includes recycling plants in Xalapa and Apodaca. APSA plans to retain current employees at these locations. In the US, approximately 110 hourly and 24 salaried employees will be affected by the changes. IP says it is committed to minimising the impact on these employees through job placement, severance, and outplacement services where feasible. These changes align with International Paper's transformation to become a more focused provider by improving quality, reliability, and service delivery at its facilities. IP Packaging Solutions North America business executive vice-president and president Tom Hamic 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.' Earlier this month, IP unveiled plans to establish a new facility in Salt Lake City, Utah, US. "International Paper unveils restructuring for North American operations" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
19-05-2025
- Business
- Yahoo
International Paper closes Texas plants, cuts 117 jobs
International Paper Co. recently said it was shuttering two Texas facilities and laying off 117 workers as it restructures its presence along the U.S.-Mexico border. The company is closing two production facilities in Edinburg, Texas, one that manufactures containers and another that makes paper sheets. The sheet plant will be converted into a warehouse. While the company is closing two production plants in Edinburg, it is investing more funds at a nearby facility in McAllen, Texas, as well as a plant across the border in Reynosa, Mexico, officials said. 'There are 117 positions impacted; however the expansion at McAllen will create 40 new hourly positions to be filled,' International Paper Co. said in an email to FreightWaves. 'The company will assist employees and customers through this transition.'However, according to a Worker Adjustment and Retraining Notification (WARN) Act notice filed on May 9 in Texas, International Paper will lay off a total of 132 workers in Edinburg, as well as five employees in McAllen. International Paper did not immediately respond to a request from FreightWaves for clarification on the number of employees being laid off in Texas. Memphis, Tennessee-based International Paper (NYSE: IP) is a global provider of paper and packaging solutions. It has more than 260 facilities in 30 countries and employs more than 65,000 workers.. The Reynosa operation will be moving to a more modern and capable facility that is currently under construction.'The decision to cease operations at our two Edinburg facilities while investing in McAllen and Reynosa allows us to focus our efforts, provide excellent customer experiences and maintain a competitive cost structure that we believe positions us for profitable growth,' Tom Hamic, International Paper's executive vice president and president of packaging solutions North America, said in a news release. Since October, International Paper has laid off over 2,500 employees and closed facilities in Arizona, Illinois, Pennsylvania, Louisiana, South Carolina, North Carolina, Missouri, Tennessee and Texas. During a first-quarter earnings call with analysts on April 30, International Paper CEO Andy Silvernail said demand for packaging and paper products declined across North America in recent months. 'Industry demand in North America was down 2% in the first quarter, and based on our order patterns, we expect that level of demand to continue into the second quarter,' Silvernail said. The post International Paper closes Texas plants, cuts 117 jobs appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
International Paper to restructure footprint along US-Mexico border
This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. International Paper announced it will close two facilities as part of an effort to rework its footprint in the Rio Grande Valley along the United States-Mexico border. It will close a box plant and sheet plant in Edinburg, Texas. This will affect 117 employees, a spokesperson said via email. IP also plans to make investments in the region. It will convert the current Edinburg sheet plant into a warehouse and expand an existing facility in McAllen, Texas. The company's website classifies McAllen as a container plant. As a result of the investment, 40 new hourly positions will be created at McAllen, the spokesperson said. In addition, IP intends to shift its operations in Reynosa, Mexico, to a more modern facility under construction there. The company plans to assist both customers and employees affected by the closures and realignment. It aims to 'minimize the impact to affected employees through natural attrition, retirements and open positions at other IP facilities,' including open positions at the McAllen facility, according to a news release. "The decision to cease operations at our two Edinburg facilities while investing in McAllen and Reynosa allows us to focus our efforts, provide excellent customer experiences and maintain a competitive cost structure that we believe positions us for profitable growth," said Tom Hamic, executive vice president and president of packaging solutions North America, in a statement. Upon joining IP as CEO in May 2024, Andy Silvernail launched a streamlining strategy to return the company to profitability, which has resulted in numerous facility closures and at least 2,100 layoffs since autumn. In February, the company announced it would close four facilities in four states — including the Red River containerboard mill in Campti, Louisiana — collectively impacting 674 employees. Analysts have predicted for months that International Paper would continue its optimization into 2025, which would likely bring more facility closures, although they have not offered firm numbers. IP has not addressed exactly how many more closures and layoffs are expected this year. During the company's Q1 2025 earnings call last month, Silvernail said IP has undergone a 'step-change improvement' in performance due to the transformation strategy. He also described work to implement the same optimization plan in Europe following the January acquisition of London-based DS Smith. IP also is divesting five corrugated box plants in Europe, as required by the European Commission for approval of the DS Smith acquisition. Germany-based Palm Group offered to buy those plants, and the deal is expected to close in the second quarter. Maria Rachal contributed additional reporting to this story. Recommended Reading International Paper to close 4 facilities, affecting 674 employees Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
