Recently, International Paper established that it was changing its method of operating in North America. The firm desires to concentrate on the development of sustainable packages as well as making an increased contribution in their prime areas and customer base.
It will exit the molded fiber company and implement changes at two plants in the U.S, and also it will sell off some of its assets in Mexico. All this will ensure that its packaging footprint is more efficient.
International Paper will first halt the production of molded fibers, and transform the plant at Reno, Nevada to package it. This gesture shifts the business to locations where there are higher demands and fewer locations where it manufactures products.
Then, the recycling plant in Wichita, Kansas and packaging facility in Marion, Ohio will be closed. The total number of about 134 both hourly and paid jobs will be impacted by these developments. International Paper will assist its employees with job transfer, retirement plans, vacant jobs and also out placement services.
In Mexico International Paper has reached an agreement to transfer three properties to APSA ( Acabados de Papeles Santinados y Absorbentes ). The sale comprises of the containerboard mill in Xalapa, recycling of Xalapa and Apodaca. APSA will retain the already onsite workforce. The sale is a part of a strategy to streamline the portfolio of the company and concentrate on key geographies and clients.
They are subsequent to the purchase of DS Smith in 2025, which expanded the scale and the capacity of International Paper in packaging in North America and EMEA (Europe, Middle East and Africa).
The redevelopment of the Reno plant constitutes an investment into the lines of packaging that accommodate new demand of its customers and more stringent environmental regulations. Abandoning molded fiber will enable the withdrawal of resources to create more sustainable packaging capability.
International Paper does not want to experience any form of interruption that may expose the customers or the suppliers. Different functions are teaming to improve on timing, relocation of equipment, and inventory running in smooth motion.
The reorganization will reduce costs and assist the firm to be faster and nimble in packaging. It seeks to increase distribution, reinforce the supply chain and to service high-volume, high-margin clients.
International Paper is among the largest packaging companies in the world, with net sales of 2024 standing at 18.6 billion dollars and more than 30 countries of operation. It targets long-term change and sustainability as part of their strategies and operational excellence. The organization is employing over 65,000 globally.
With such changes, the International Paper will continue expanding in areas where there is high long-term demand of packaging e.g. e-commerce, food services, industrial transport, etc. and custom corrugated solutions.
Regular reports and communication with the customers will allow the company to share the information about transition and after-transition investment.
