International Paper has announced a sweeping set of strategic changes, including the sale of its Global Cellulose Fibers (GCF) business, major investments in Alabama, and mill closures in Georgia.
The company reached a $1.5 billion agreement with American Industrial Partners (AIP) to sell its GCF business, which generated $2.8 billion in 2024. The unit employs 3,300 people worldwide and produces pulp for tissue, hygiene, construction, and specialty applications. The deal is expected to close by year-end, subject to regulatory approvals.
“We’re pleased to see GCF transitioning to AIP, which is focused on investing in and growing industrial businesses,” said Andy Silvernail, CEO of International Paper.
In its North American Packaging Solutions division, IP will invest $250 million to convert a paper machine at the Riverdale mill in Selma, Alabama, to containerboard production. At the same time, it will permanently close the Savannah containerboard mill and packaging facility, along with the Riceboro containerboard mill, timber, and lumber operations. The closures, scheduled by the end of September 2025, will affect about 1,100 jobs.
“These decisions are difficult but essential to positioning International Paper for long-term success,” said Tom Hamic, Executive Vice President of North America Packaging Solutions.
The Riverdale conversion is slated for completion by the third quarter of 2026. Collectively, these moves will reduce IP’s annual containerboard capacity by about one million tons.
International Paper is a global producer of sustainable packaging solutions, with headquarters in Memphis, Tennessee, and EMEA offices in London, UK. The company employs more than 65,000 people and operates in over 30 countries. In 2024, it reported net sales of $18.6 billion and, in 2025, expanded through its acquisition of DS Smith.
