International Paper to Invest $250 Million in Alabama Mill, Close Georgia Facilities

On Thursday, International Paper (IP) announced a series of strategic changes to its packaging solutions business in North America aimed at strengthening customer service and optimizing its manufacturing footprint.

The company said it will invest $250 million to convert the No. 16 machine at its Riverdale mill in Selma, Alabama, to produce containerboard. The conversion is expected to be completed by 2026Q3.

At the same time, IP will permanently close its containerboard mill and packaging facility in Savannah, Georgia, as well as the Riceboro containerboard mill and Riceboro Timber and Lumber. The Riceboro and Savannah mills will shut down in phases by the end of September, and the Savannah packaging facility will also cease operations by the end of September. These changes will reduce International Paper’s annual containerboard capacity by about one million tons.

According to the company, the actions will affect about 1,100 hourly and salaried positions. IP said it will provide severance packages and outplacement assistance for eligible employees and is committed to supporting workers through the transition.