IP announces plans to permanently close its
Orange mill and to permanently
cease production on pulp machines in Riegelwood and Pensacola
MEMPHIS,
Tenn., Oct. 18, 2023 /PRNewswire/ --
International Paper (NYSE: IP) today announced a series of actions
to further strengthen and optimize its manufacturing system to meet
customers' needs. The company will permanently close its
containerboard mill in Orange,
Texas, and will permanently cease production on two of
its pulp machines - the #20 machine in Riegelwood, N.C., and the #4 machine in
Pensacola, Fla.
"Decisions like these are extremely difficult, because of the
impact on our employees, their families and the communities in
which we operate," said Chairman and CEO Mark Sutton. "We are grateful to our employees
in Orange, Riegelwood and Pensacola for their significant contributions
to the company over the years. We are committed to providing
severance benefits, outplacement assistance and more to help
employees during this time."
In total, approximately 900 positions will be impacted. Wherever
possible, the company's goal is to minimize the impact on employees
by using current vacancies, retirements, normal attrition and other
roles at International Paper.
The permanent closure of the Orange mill will reduce the company's
containerboard capacity by approximately 800,000 tons. The
company's remaining containerboard mill system in North America will include 17 mills with an
annual production capability of 13MM tons. The actions in
Pensacola and Riegelwood will reduce IP's pulp capacity by
approximately 500,000 tons (300,000 tons fluff pulp and 200,000
tons southern bleached softwood). The company's remaining pulp mill
system will include eight mills with an annual production
capability of 2.7MM tons.
"We believe strongly in the attractive, long-term fundamentals
of our businesses and these actions further strengthen our
competitive platform. Our optimized mill system, with its broad
capabilities, gives us the flexibility to meet our customers' needs
today and in the future," said Sutton.
The company expects the Orange
mill and the #20 machine in Riegelwood to cease production by the end of
the year. The #4 machine in Pensacola is currently idled and will not
resume production.
About International Paper
International Paper (NYSE:
IP) is a global producer of planet-friendly packaging, pulp and
other fiber-based products, and one of North America's largest recyclers.
Headquartered in Memphis, Tenn.,
we employ approximately 39,000 colleagues globally who are
committed to creating what's next. We serve customers worldwide,
with manufacturing operations in North
America, Latin America,
North Africa and Europe. Net sales for 2022 were $21.2 billion. Additional information can be
found by visiting internationalpaper.com.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements reflect management's current
views and are subject to risks and uncertainties that could cause
actual results and the timing of events to differ materially from
those expressed or implied in these forward-looking statements.
Factors which could cause actual results to differ from such
forward-looking statements include, but are not limited to,
industry, global, economic and other conditions, as well as other
factors. These forward-looking statements are also subject to the
risks and uncertainties relating to the business of the Company
contained in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2022,
filed with the U.S. Securities and Exchange Commission ("SEC") and
subsequent reports filed with the SEC. In addition, other risks and
uncertainties not presently known to the Company or that we
currently believe to be immaterial could affect the accuracy of any
forward-looking statements. The Company undertakes no obligation to
publicly update any forward-looking statements contained in this
press release, whether as a result of new information, future
events or changes in expectations.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/international-paper-announces-strategic-actions-301959856.html
SOURCE International Paper