International Paper is realigning its footprint in the Rio Grande Valley to support its North American growth strategy and strengthen its packaging network.
The company announced on May 9 that it will close two plants in Edinburg, Texas, while investing in facilities in McAllen, Texas, and Reynosa, Mexico.
The Edinburg sheet plant will be converted into a warehouse, and operations at the Edinburg box plant will cease. In parallel, International Paper is enhancing its McAllen facility to increase capacity and shifting current activities in Reynosa to a new, more advanced site under construction in the same city.
“This decision allows us to focus our efforts, deliver an excellent customer experience and maintain a competitive cost structure that we believe positions us for profitable growth,” said Tom Hamic, Executive Vice President and President of Packaging Solutions North America.
To ease the transition, the company plans to minimize job losses through retirements, attrition, and internal transfers, including opportunities at McAllen. Support will also be provided to affected employees and customers.
Following its recent acquisition of DS Smith, International Paper now employs over 65,000 people in more than 30 countries. With 2024 net sales reaching $18.6 billion, the company continues to strengthen its leadership across North America and EMEA in renewable and responsible packaging solutions.