International Paper is taking another significant step in its ongoing business transformation strategy by optimizing its packaging network across North America.
The company announced a series of strategic actions aimed at improving operational efficiency, strengthening its cost structure, and directing investments toward higher-value growth opportunities while continuing to deliver sustainable packaging solutions to customers.
As part of this initiative, International Paper plans to cease preprint operations at its Richwood, Kentucky facility and permanently close its sheet plant in Aurora, Illinois, along with converting facilities in Elk Grove, California, and Barrington, New Jersey. The closures are expected to be completed by the end of the third quarter of 2026.
The move reflects the company’s long-term vision of creating a more agile and efficient manufacturing network capable of meeting evolving customer demands while enhancing competitiveness in the packaging sector. By consolidating operations and optimizing production capacity, International Paper aims to improve resource utilization, streamline logistics, and increase operational effectiveness across its North American footprint.
According to Tom Hamic, Executive Vice President and President of Packaging Solutions North America, these decisions, while difficult, are necessary to position the company for future growth and success. He emphasized that the optimization efforts will strengthen the company’s network, focus investments where they generate the greatest value, and enhance International Paper’s ability to serve customers with innovative and sustainable packaging solutions.
The company acknowledged the impact these changes will have on employees and stated that comprehensive support programs will be provided. Affected workers will have access to severance packages, continued benefits, and outplacement assistance designed to help them transition to new employment opportunities.
International Paper also reassured customers that service continuity remains a top priority. The company plans to transfer production and customer orders to other facilities within its network, ensuring a seamless supply chain transition and minimizing disruptions to operations.
The network optimization initiative is part of International Paper’s broader strategy to strengthen its market position, improve profitability, and support long-term sustainable growth. By focusing resources on its most efficient facilities and highest-return investments, the company aims to enhance its ability to deliver high-quality, environmentally responsible packaging products while maintaining strong customer relationships across North America.
As the packaging industry continues to evolve, International Paper’s latest restructuring efforts underscore its commitment to operational excellence, sustainability, and creating long-term value for customers, employees, and shareholders alike.