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International Paper announces closure of South Carolina factory

The announcement follows multiple rounds of layoffs at various facilities around the country, including corporate jobs in Memphis.
A week after announcing corporate layoffs across the company, International Paper announced that they would cease operations of four factories across the U.S.

MEMPHIS, Tenn. — International Paper officials announced the permanent closure of a facility in Georgetown, South Carolina.

The facility serves as a pulp and paper mill and will shut down fully by the end of the year, company officials announced in a press release.

"This decision is especially difficult because of the impact on hard-working employees, their families and the surrounding communities," Bernie Chascin, Georgetown mill manager, said in a release.

A total of 674 employees will be impacted by the closure, including 526 hourly employees and 148 salaried employees.

IP officials said all employees will be offered severance and outplacement services.

The recent announcement coincides with another release on factory closures earlier in October.

Company officials previously said that facilities in Cleveland, Tennessee; Kansas City, Missouri; Rockford, Illinois; and Statesville, North Carolina, would cease operations on or before Dec. 18, 2024.

IP officials also announced previously that 650 jobs would be cut from the corporate sphere, including 400 in Memphis.

Company officials did not share more information on the layoffs in Memphis.

The company, which is headquartered in Memphis, saw shutdowns in multiple states for plants in Texas, North Carolina and Florida in 2023, which saw roughly 900 workers affected.

IP said a containerboard mill would permanently close in Orange, Texas, and leaving 17 mills in operation in North America. The Orange mill is expected to cease production by end of the year.

The shutdown of two pulp machines will happen at two plants – one in Riegelwood, North Carolina, and the other in Pensacola, Florida. The Riegelwood machine is expected to cease production by the end of the year, while the Pensacola machine is already idled and will not resume production.

"Going forward, we are laser-focused on delivering profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers," said IP Chairman and CEO Andy Silbernail in a Q3 earnings release. "We are deploying an 80/20 approach to strategically align resources to become excellent with our customers, while reducing complexity and cost across the company. This includes organizational restructuring and corporate cost reductions, as well as investments to strengthen our most competitive and strategic assets, paired with facility closures to structurally reduce operating costs. 

"In addition, we are exploring strategic options for our Global Cellulose Fibers business. We recognize the impact of these difficult decisions and are providing support for team members who are affected," Silvernail added. "As we look forward to the combination with DS Smith, we expect the transaction will close early in the first quarter of 2025. Overall, I'm confident that our transformational journey will unlock substantial value at IP and strengthen the company for our employees, customers and shareholders."

IP also laid off workers at a San Antonio paper plant earlier in October.

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