- International Paper (IP, Financial) is exiting the molded fiber business to strengthen its packaging operations in North America.
- The restructuring involves facility closures in Ohio and Kansas and the sale of Mexican operations to APSA.
- Approximately 134 U.S. employees will be impacted, with severance and support provided where feasible.
International Paper (IP), a prominent name in sustainable packaging, has announced a strategic realignment of its North American operations, emphasizing a shift towards its core packaging business. As part of this initiative, IP will exit the molded fiber business entirely and reconfigure its Reno, Nevada facility to bolster packaging operations.
The restructuring plan includes the shutdown of facilities in Marion, Ohio, and Wichita, Kansas. Meanwhile, in Mexico, IP will divest its operations, including a containerboard mill and recycling facilities in Xalapa and Apodaca, to Acabados de Papeles Santinados y Absorbentes (APSA). The transaction ensures that all existing Mexican employees are retained by APSA, minimizing the workforce impact in the region.
In the United States, the operational changes will affect approximately 134 employees—110 hourly and 24 salaried positions. International Paper is committed to supporting those affected with severance packages, outplacement assistance, and potential internal transfers where opportunities exist.
Tom Hamic, Executive Vice President and President of IP’s Packaging Solutions North America business, acknowledged the difficulty of these decisions but emphasized their necessity in allowing the company to focus on strategic geography, customer base, and product offerings. The overall goal is to invest in sustainable packaging solutions and enhance service quality, reliability, and delivery efficiency.
These changes align with industry trends toward consolidation and strategic exits from lower-margin segments, positioning International Paper to strengthen its presence in the attractive North American market.
