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International Paper Shuts Four Facilities to Streamline Operations

Packaging giant International Paper is shuttering three manufacturing plants and ending preprint operations at a fourth facility by the end of the third quarter. The move, aimed at lowering costs and consolidating regional capacity, follows a broader pattern of asset rationalization for the company throughout the current fiscal year.

International Paper Shuts Four Facilities to Streamline Operations

The closures will impact the Aurora, Illinois sheet plant along with converting facilities in Elk Grove, California and Barrington, New Jersey. Additionally, the company will cease preprint production at its Richwood, Kentucky site. Management intends to shift the resulting customer volume to other existing locations within these respective regions.

This reduction arrives alongside a selective expansion strategy, marked by last month’s acquisition of a plant from Delmarva Corrugated Packaging. While the firm has recently shuttered various containerboard mills and packaging plants to trim overhead, these new cuts represent the latest phase in a long-term network optimization effort. Affected employees are slated to receive severance packages, benefits, and outplacement assistance as the company works to finalize the transition.

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