International Paper (IP) has unveiled a series of strategic changes aimed at strengthening its packaging operations and focusing on its core markets.
The company has reached a definitive agreement to sell its Global Cellulose Fibers (GCF) business to the private equity firm American Industrial Partners (AIP) for $1.5bn, including $190m in preferred stock.
GCF is a leading producer of fluff pulp, softwood pulp, and modified fibres used for a wide range of personal care applications including feminine care, incontinence, infant diapers, and other products. The business operates nine manufacturing facilities across the USA, Canada, and Poland with a total of 3,300 employees. In 2024, the GCF business generated sales of $2.8bn.
The transaction is expected to close by the end of 2025, subject to regulatory approval.
PM at Riverdale mill converted to containerboard production
IP also announced plans to invest $250m in the conversion of the PM 16 of its Riverdale mill in Selma, Alabama, to containerboard production. The rebuild is scheduled for completion in the third quarter of 2026.
At the same time, the company plans to permanently close its Riceboro and Savannah containerboard mills in Georgia, as well as the Savannah packaging plant. Operations at the affected sites, which together employ around 1,100 people, will wind down in phases by the end of September 2025. According to IP, the closures will reduce its containerboard capacity by roughly one million tpy.
The measures are intended to streamline production, strengthen the cost position and allow IP to focus on geographies, customers and products with the best long-term prospects.
In 2025, IP completed the acquisition of DS Smith, creating a leading packaging company in North America and the EMEA region. The group reported net sales of $18.6bn in 2024 and currently employs more than 65,000 people worldwide. In order to streamline the merged operations, IP has already announced various closures in the USA and the UK, as well as investments in modern assets.
