International Paper (IP), one of the world’s largest packaging producers, is making bold moves to redefine its position in the corrugated industry. In a sweeping transformation, the company is divesting its pulp business and doubling down on containerboard — signaling a strategic pivot that could reshape supply chains across North America.
Goodbye Pulp, Hello Packaging
“We’re building for the future,” said Andy Silvernail, CEO of International Paper. “GCF is a strong business, and I’m pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses.”
The company has reached a definitive agreement to sell its Global Cellulose Fibers (GCF) division to American Industrial Partners for $1.5 billion. The move reflects IP’s sharpened focus on sustainable packaging solutions and its intent to streamline operations around high-margin, core products.
$250M Investment in Riverdale Mill
As part of its packaging strategy, IP is investing $250 million to convert the No. 16 machine at its Riverdale mill in Selma, Alabama, to produce containerboard — the backbone of corrugated packaging.
“This investment reflects our commitment to delivering high-quality, reliable service while strengthening our advantaged cost position,” said Tom Hamic, Executive Vice President and President of IP’s North America Packaging Solutions.
The conversion is expected to be completed by Q3 2026 and will enhance IP’s ability to serve growing demand in the corrugated sector.
Four Facility Closures, One Million Tons Cut
In parallel, IP will permanently shut down four facilities in Georgia:
- Savannah containerboard mill
- Savannah packaging facility
- Riceboro containerboard mill
- Riceboro Timber and Lumber
These closures will reduce IP’s annual containerboard capacity by approximately one million tons and impact around 1,100 employees.
“We understand how deeply these decisions affect our employees, their loved ones, and the surrounding communities,” Hamic added. “We are committed to supporting both our employees and customers as we navigate this transition.”
Industry Implications
With less containerboard capacity and a more focused footprint, IP’s moves could tighten supply and shift competitive dynamics in the corrugated market. For converters, box makers, and suppliers, this is a moment to reassess sourcing strategies and prepare for a leaner, more agile IP.
For reference
International Paper (NYSE: IP; LSE: IPC) is a global leader in sustainable packaging solutions. Headquartered in Memphis, Tennessee, with EMEA operations based in London, the company employs over 65,000 people and operates in more than 30 countries.
In 2025, International Paper acquired DS Smith, strengthening its position across North America and EMEA. With net sales of $18.6 billion in 2024, the company continues to focus on making the world safer and more productive through innovative, sustainable packaging.
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