MEMPHIS, Tenn. — Memphis-based International Paper announced it is closing a mill in Texas and ending production on two pulp machines in two other states, affecting about 900 employees. So far, Memphis employees are not expected to be impacted.
In the release, the company said the actions are meant "to further strengthen and optimize its manufacturing system to meet customers' needs."
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.
The company said in total about 900 workers would be impacted between all three locations, which they hope to minimize by using current vacancies, retirements, and normal attrition.
"Decisions like these are extremely difficult, because of the impact on our employees, their families and the communities in which we operate," said Chairman and CEO Mark Sutton in a news release. "We are committed to providing severance benefits, outplacement assistance and more to help employees during this time."
ABC24 reached out to IP about the impact on Memphis employees and received the following statement: “We are continually assessing our staffing needs both at Memphis and in our other facilities in an ongoing effort to ensure that our organization is structured to best serve our size and complexity as well as our customers. Should there be impacted positions in Memphis, our goal is to minimize the impact on our team members through attrition and other available options within International Paper.”
