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International Paper Announces Strategic Changes

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International Paper (NYSE: IP) announced major strategic changes including the $1.5 billion sale of its Global Cellulose Fibers (GCF) business to American Industrial Partners (AIP). The GCF business, which generated $2.8 billion in revenue in 2024, employs 3,300 people globally across nine manufacturing facilities.

Additionally, IP announced significant changes to its North American packaging business, including a $250 million investment to convert the Riverdale mill in Selma, Alabama, and the closure of multiple facilities including the Savannah containerboard mill, Savannah packaging facility, and Riceboro operations. These changes will result in approximately 1,100 job cuts and a net reduction of one million tons in annual containerboard capacity.

International Paper (NYSE: IP) ha annunciato cambiamenti strategici rilevanti, tra cui la cessione della sua attività Global Cellulose Fibers (GCF) ad American Industrial Partners (AIP) per $1,5 miliardi. L’unità GCF, che ha registrato $2,8 miliardi di ricavi nel 2024, impiega 3.300 persone in tutto il mondo e gestisce nove stabilimenti produttivi.

Inoltre, IP ha comunicato modifiche significative al business del packaging nordamericano, compreso un investimento di $250 milioni per la riconversione del sito di Riverdale a Selma, Alabama, e la chiusura di più impianti, tra cui la cartiera di Savannah, la struttura di packaging di Savannah e le operazioni di Riceboro. Queste misure comporteranno circa 1.100 tagli di posti di lavoro e una riduzione netta di un milione di tonnellate nella capacità annua di containerboard.

International Paper (NYSE: IP) anunció cambios estratégicos importantes, incluida la venta de su negocio Global Cellulose Fibers (GCF) a American Industrial Partners (AIP) por $1.500 millones. El negocio GCF, que generó $2.800 millones en ingresos en 2024, emplea a 3.300 personas en todo el mundo y opera nueve instalaciones manufactureras.

Además, IP comunicó modificaciones relevantes en su negocio de empaques en Norteamérica, entre ellas una inversión de $250 millones para reconvertir la planta de Riverdale en Selma, Alabama, y el cierre de varias instalaciones, incluidas la papelera de Savannah, la planta de envasado de Savannah y las operaciones de Riceboro. Estos cambios implicarán aproximadamente 1.100 despidos y una reducción neta de un millón de toneladas en la capacidad anual de containerboard.

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International Paper (NYSE: IP) a annoncé des changements stratégiques majeurs, notamment la vente de son activité Global Cellulose Fibers (GCF) à American Industrial Partners (AIP) pour 1,5 milliard de dollars. L’activité GCF, qui a généré 2,8 milliards de dollars de revenus en 2024, emploie 3 300 personnes dans le monde et exploite neuf sites de production.

Par ailleurs, IP a annoncé des réajustements importants de sa division emballage en Amérique du Nord, incluant un investissement de 250 millions de dollars pour convertir l’usine de Riverdale à Selma, Alabama, et la fermeture de plusieurs sites, dont la papeterie de Savannah, l’installation d’emballage de Savannah et les opérations de Riceboro. Ces mesures entraîneront environ 1 100 suppressions d’emplois et une réduction nette d’un million de tonnes de capacité annuelle en containerboard.

International Paper (NYSE: IP) hat weitreichende strategische Veränderungen angekündigt, darunter den Verkauf seines Geschäftsbereichs Global Cellulose Fibers (GCF) an American Industrial Partners (AIP) für 1,5 Milliarden US-Dollar. Das GCF-Geschäft erzielte 2,8 Milliarden US-Dollar Umsatz im Jahr 2024 und beschäftigt weltweit 3.300 Mitarbeiter an neun Produktionsstandorten.

Außerdem kündigte IP bedeutende Anpassungen im nordamerikanischen Verpackungsgeschäft an, darunter eine Investition von 250 Millionen US-Dollar zur Umrüstung der Riverdale-Mühle in Selma, Alabama, sowie die Schließung mehrerer Anlagen, darunter die Containerboard-Mühle in Savannah, die Verpackungsanlage in Savannah und die Riceboro-Standorte. Diese Maßnahmen werden voraussichtlich rund 1.100 Stellen kosten und zu einer Nettoverringerung der jährlichen Containerboard-Kapazität um eine Million Tonnen ´Úü³ó°ù±ð²Ô.

Positive
  • Sale of GCF business for $1.5 billion, aligning with strategy to focus on sustainable packaging
  • Strategic $250 million investment in Riverdale mill conversion
  • GCF business demonstrated strong performance with $2.8 billion in revenue (2024)
  • Optimization of manufacturing footprint to achieve advantaged cost position
Negative
  • Reduction of 1,100 jobs across multiple facilities
  • Net reduction of one million tons in annual containerboard capacity
  • Closure of multiple facilities including Savannah and Riceboro operations
  • Potential short-term operational disruption during transition period

Insights

IP's $1.5B divestiture of its cellulose business and mill consolidation signals strategic refocus on packaging while addressing industry overcapacity.

International Paper's comprehensive restructuring represents a significant strategic pivot to streamline operations and strengthen its core packaging business. The $1.5 billion sale of its Global Cellulose Fibers business to American Industrial Partners removes a non-core segment that generated $2.8 billion in revenue but likely operated at lower margins than the packaging business. This divestiture aligns with the industry trend of portfolio rationalization, where diversified paper companies are increasingly focusing on their highest-return segments.

The simultaneous closure of multiple facilities (Savannah containerboard mill, Savannah packaging facility, and Riceboro mill) coupled with a $250 million investment to convert the Riverdale mill demonstrates a classic consolidation strategy. By reducing annual containerboard capacity by approximately one million tons while upgrading remaining assets, IP is addressing the persistent overcapacity issues plaguing the North American containerboard market. This reduction represents roughly 7% of IP's containerboard capacity and will help balance supply-demand dynamics industry-wide.

The elimination of 1,100 positions, while painful for affected communities, reflects the automation trends in modern paper manufacturing where fewer, more efficient mills can maintain production levels. The phased implementation through September 2025 allows for orderly transition, while the extended Riverdale conversion timeline (completion by Q3 2026) suggests a measured approach to capital deployment. These moves position IP with an improved cost structure in its core packaging business while generating significant cash from the divestiture that could potentially be deployed for debt reduction, shareholder returns, or targeted growth initiatives.

IP to Sell Global Cellulose Fibers Business to American Industrial Partners

Other Changes Include a $250 Million Investment in the Riverdale Mill in Selma, Ala. and the Closure of Riceboro Mill, Savannah Mill and Savannah Box Plant

MEMPHIS, Tenn., Aug. 21, 2025 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC), a global leader in sustainable packaging solutions, today announced a series of strategic changes to achieve an advantaged cost position, deliver a superior customer experience and maintain a high relative supply position as part of its ongoing transformation journey.  

Agreement to Sell Global Cellulose Fibers Business
International Paper has reached a definitive agreement with American Industrial Partners (AIP) to sell its Global Cellulose Fibers (GCF) business for $1.5 billion, subject to closing adjustments, including the issuance of preferred stock with an aggregate initial liquidation preference of $190 million. The Company previously announced the decision to review strategic alternatives for its GCF business last fall, as part of the Company's strategy to focus on sustainable packaging solutions. The transaction is expected to close by the end of the year, subject to regulatory approvals. 

"GCF is a strong business, and I'm pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses," said IP Chief Executive Officer Andy Silvernail. "Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio. These actions, combined with its talented and committed team made it an attractive investment for AIP to enter the pulp market and have positioned GCF for long-term success under new ownership."

"GCF is well-positioned for future growth, supported by its large and sustainable wood basket, durable end markets, industry leading quality and innovation, long-term customer relationships, deeply knowledgeable employees, and well-invested facilities," said Rick Hoffman, Partner at AIP. "We look forward to partnering with GCF Senior Vice President Clay Ellis and the rest of the talented and tenured management team to implement their growth vision."

The GCF business creates safe, high-quality pulp for a wide range of applications like towel and tissue products, diapers, feminine care, incontinence and other personal care products that promote health and wellness. In addition, its specialty pulp serves as a sustainable raw material used in construction materials, paints, coatings and more. GCF generated $2.8 billion in revenue in 2024 and has 3,300 employees globally, with nine manufacturing facilities and eight regional offices.  

Strategic changes to Packaging Solutions business in North America
International Paper's packaging business in North America has initiated a number of actions to enhance its ability to serve and grow with customers while improving its manufacturing footprint, including:

  • Investment of $250 million to convert the #16 machine at the Riverdale mill in Selma, Ala. to produce containerboard
  • The permanent closure of the Savannah, Ga. containerboard mill, the Savannah, Ga. packaging facility, Riceboro containerboard mill and Riceboro Timber and Lumber

These changes will impact approximately 1,100 hourly and salaried positions. International Paper is committed to supporting affected employees through this transition. The Company will offer severance packages, along with outplacement assistance for eligible employees, to support them during this transition.

"We understand how deeply these decisions affect our employees, their loved ones, and the surrounding communities," said Tom Hamic, Executive Vice President and President of International Paper's North America Packaging Solutions business. "We are committed to supporting both our employees and customers as we navigate this transition."

"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," Hamic added. "Our investment in the Riverdale mill reflects our commitment to delivering high-quality, reliable service while strengthening our advantaged cost position."

The Riverdale conversion is expected to be completed by the third quarter of 2026. The Riceboro and Savannah mills will shut down in phases by the end of September 2025, and the Savannah packaging facility will also cease operations by the end of September. These combined changes will result in a net reduction of the company's annual containerboard capacity by approximately one million tons.

About International Paper �
International Paper (NYSE: IP; LSE: IPC) is the global leader in sustainable packaging solutions. With company headquarters in Memphis, Tennessee, USA, and EMEA (Europe, Middle East and Africa) headquarters in London, UK, we employ more than 65,000 team members and serve customers around the world with operations in more than 30 countries. Together with our customers, we make the world safer and more productive, one sustainable packaging solution at a time. Net sales for 2024 were $18.6 billion. In 2025, International Paper acquired DS Smith creating an industry leader focused on the attractive and growing North American and EMEA regions. Additional information can be found by visiting�www.internationalpaper.com.

Morgan Stanley & Co. LLC acted as financial advisors, and Debevoise & Plimpton LLP and McCarthy Tétrault LLP acted as legal advisors to International Paper for the sale of the Global Cellulose Fibers business.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are not guarantees of future performance and reflect management's current expectations and beliefs regarding the divestiture of its Global Cellulose Fibers business, our closures and associated headcount reduction as well as anticipated expense reductions, the expected amount of certain pre-tax charges and the anticipated timing of such pre-tax charges, our 80/20 strategic approach and are subject to certain risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied. Factors which could cause actual results to differ include, among others, the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the sale agreement; the outcome of any legal proceedings that may be instituted against the parties to the transaction; the failure to obtain necessary regulatory approvals; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the value of asset impairment charges arising from or in connection with the transaction; diversion of management's attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; the ability of the parties to consummate the Transaction and the other transactions contemplated by the Sale Agreement and the timing of such transactions; industry, global, economic and other conditions and political changes, as well as other factors, that could affect the mill closures including the amount of such pre-tax charges and the timing of such pre-tax charges. Additional risks and uncertainties are discussed in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ("SEC") on February 21, 2025, and subsequent reports filed with the SEC. The Company undertakes no obligation to update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in expectations. 

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FAQ

What is the value of International Paper's GCF business sale to AIP?

International Paper is selling its Global Cellulose Fibers business to American Industrial Partners for $1.5 billion, including preferred stock with an initial liquidation preference of $190 million.

How many jobs will be affected by IP's strategic changes in 2025?

The strategic changes will impact approximately 1,100 hourly and salaried positions across multiple facilities, including the Savannah and Riceboro operations.

What is International Paper's investment plan for the Riverdale mill?

IP plans to invest $250 million to convert the #16 machine at the Riverdale mill in Selma, Alabama to produce containerboard, with completion expected by Q3 2026.

How much containerboard capacity will IP reduce through these changes?

The combined changes will result in a net reduction of approximately one million tons in International Paper's annual containerboard capacity.

When will the International Paper GCF sale to AIP close?

The transaction is expected to close by the end of 2025, subject to regulatory approvals.

What was GCF's revenue performance before the sale?

The Global Cellulose Fibers business generated $2.8 billion in revenue in 2024 and operates nine manufacturing facilities with 3,300 employees globally.
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24.74B
522.94M
0.34%
99.67%
8.55%
Packaging & Containers
Paper Mills
United States
MEMPHIS