International Paper (IP) has announced strategic changes to its business, including the sale of its global cellulose fibers (GCF) business to American Industrial Partners (AIP) for $1.5 billion. The GCF business generated $2.8 billion in revenue in 2024 and has 3,300 employees globally, with nine manufacturing facilities and eight regional offices.
In addition to the sale of the GCF business, IP's packaging business in North America has initiated changes, including a $250 million investment to convert the #16 machine at the Riverdale mill in Selma, Ala., to produce containerboard. However, these changes will impact approximately 1,100 hourly and salaried positions, with the permanent closure of the Savannah, Ga. containerboard mill, the Savannah, Ga. packaging facility, and the Riceboro, Ga. containerboard mill and Riceboro, Ga. timber and lumber mill.
The strategic changes in the packaging business are expected to result in a net reduction of the company’s annual containerboard capacity by approximately one million tons. The Riverdale conversion is anticipated to be complete by the third quarter of 2026, while 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 changes are part of the company’s ongoing transformation journey to achieve an advantaged cost position, deliver a superior customer experience, and maintain a high relative supply position. IP's net sales for 2024 were $18.6 billion, and in 2025, the company acquired DS Smith, creating an industry leader focused on the North American and EMEA regions. As a result of these announcements, the company's shares have moved -0.66% on the market, and are now trading at a price of $47.01. Check out the company's full 8-K submission here.
