08/21/2025
INTERNATIONAL PAPER ANNOUNCES STRATEGIC CHANGES. 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.
STRATEGIC CHANGES TO PACKAGING SOLUTIONS BUSINESS IN NORTH AMERICA. International Paper’s packaging business in North America has initiated a number of actions, including: investment of $250 million to convert the #16 machine at the Riverdale mill in Selma, ALABAMA to produce containerboard; and permanent closure of the Savannah, GEORGIA. containerboard mill, the Savannah, GEORGIA packaging facility, Riceboro containerboard mill and Riceboro Timber and Lumber. These changes will impact approximately 1,100 hourly and salaried positions.
“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,” said Tom Hamic, Executive Vice President and President of International Paper’s North America Packaging Solutions business. 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.
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.
The GCF business creates 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.