International Paper, one of the world’s largest paper producers, will close three mills in southeast Georgia, cutting 1,100 jobs in a sweeping change. The closures—as confirmed by U.S. media reports overnight—include the Savannah containerboard mill and packaging facility, as well as Riceboro’s containerboard, timber and lumber operations. Shutdowns will begin in phases starting next month and form part of a broader transformation strategy that includes a $250 million investment in the company’s Selma, Alabama, plant.
According to International Paper, the closures are intended to streamline operations and concentrate resources on more strategic assets. “We understand how deeply these decisions affect our employees, their loved ones, and the surrounding communities,” said Tom Hamic, executive vice president and president of North America Packaging Solutions. “We are committed to supporting both our employees and customers as we navigate this transition.”
The announcement has sent shockwaves through Georgia’s timber industry and local communities. State House Speaker Jon Burns, who represents Newington in Effingham County, described the closures as a major blow to the region. “I, along with each member of our delegation in the House, remain committed to working tirelessly with our state leaders, federal partners and timber producers to navigate this difficult transition, secure new employment opportunities for the hundreds of citizens impacted by the closures and safeguard the long-term strength and viability of Georgia’s timber industry,” Burns said.
The timber industry has already been under strain. Last year, Wood Central reported that Hurricane Helene caused more than a billion dollars worth of damage to the state’s forest industry. In response, Governor Brian Kemp signed legislation in May introducing a reforestation tax and allowing local governments to suspend harvest tax collections.
Savannah Mayor Van Johnson expressed disappointment over the plant’s closure, highlighting the company’s longstanding role in the community. “Through seasons of change and challenge, International Paper has emerged to be a great corporate partner to our community,” Johnson said. “My greatest concern is for the 650 valued employees and families whose lives are directly impacted by this decision, especially during these challenging economic times.”
International Paper sells cellulose fibres unit for $1.5 billion
The closures coincide with a major divestment by International Paper, which yesterday agreed to sell its Global Cellulose Fibres (GCF) division to American Industrial Partners for $1.5 billion. That deal is expected to close in the fourth quarter of 2025, pending regulatory approval.
GCF operates nine manufacturing facilities and eight regional offices across the U.S., Canada, and Poland. It specialises in absorbent fluff pulp used in personal care products such as feminine hygiene, incontinence, and infant diapers, as well as specialty applications like construction materials and coatings. The division generated between $2.5 billion and $2.8 billion in revenue in 2024 and employs approximately 3,300 people.
International Paper CEO Andy Silvernail said the sale reflects a strategic realignment. “We’ve simplified our portfolio and aligned with strategic customers, making GCF a strong fit for American Industrial Partners’ investment strategy,” he said. Whilst Rick Hoffman, a partner at American Industrial Partners, praised GCF’s “strong customer relationships, innovation, and well-invested asset base” as key drivers for future growth.
The sale follows a strategic review of the cellulose business under International Paper’s 80/20 transformation plan, which prioritises high-value packaging segments. GCF’s performance had weakened, with second-quarter 2025 net sales falling to $628 million—down from $717 million a year earlier. Operating profit dropped to a $4 million loss, and the company reported $11 million in after-tax costs related to the review.
