Packaging firm International Paper to close four US plants, cut 1% of global jobs
Feb 13 (Reuters) - International Paper (IP.N), opens new tab said on Thursday it was shutting down four production facilities in the U.S. and laying off about 1% of its global workforce to tackle softer demand for its packaging products from e-commerce and consumer goods firms.
Shares of the company, which reported a surprise fourth-quarter loss last month, rose about 2% in early trading.
Memphis, Tennessee-headquartered International Paper has seen tepid demand for its pricey paper packaging as consumer goods companies temper inventories and opt for cheaper packaging options to lower costs.
The company, which employs 65,000 people globally, said it would lay off 495 hourly workers and 179 salaried workers in total.
International Paper, which bought UK rival DS Smith in a 5.8-billion-pound ($7.23 billion) deal in January, has been streamlining its operations in the United States as higher prices hit sales volumes.
Of its nearly 200 factories in the U.S., a containerboard mill in Louisiana, recycling plant in Arizona, box plant in Pennsylvania and sheet feeder plant in Missouri would cease operations by the end of April, International Paper said.
Closing the Louisiana mill would reduce its annual containerboard capacity by about 800,000 tons, the company said.
International Paper said in October it would explore options to sell its global cellulose fibers business that makes absorbent pulp for products such as sanitary napkins and close its pulp mill in Georgetown, South Carolina.
The company had 204 production sites in the United States as of December 2023.
($1 = 0.8021 pounds)
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