Sylvamo and International Paper announced a mutual termination of their longstanding supply agreement for uncoated freesheet, bristol, and specialty papers at the Georgetown, South Carolina mill.
The supply contract, set to end on December 31, 2024, comes as International Paper prepares to cease operations at the Georgetown facility.
Sylvamo, known as "the world’s paper company," has taken proactive steps to relocate paper production previously sourced from Georgetown to its Ticonderoga, New York, and Eastover, South Carolina mills. Jean-Michel Ribiéras, Chairman and CEO of Sylvamo, emphasized that the company has been preparing for this transition since its spinoff from International Paper in 2021. “We will support our customers through this transition and will retain the most profitable products from Georgetown, reducing economic downtime in our mill system and improving our mix,” said Ribiéras. He added that Sylvamo’s future outlook remains strong, with plans to drive earnings growth by investing in high-return projects at its remaining mills.
The end of the Georgetown agreement marks a significant shift in Sylvamo’s supply chain but aligns with the company’s strategy to optimize its production portfolio and maintain high-quality service for its customers. International Paper’s closure of the Georgetown mill follows its broader initiative to streamline operations and focus on its core packaging solutions.
Sylvamo will address the impact of this transition in greater detail during its quarterly earnings call scheduled for November 12. Meanwhile, investors can find more information in a presentation on the company’s website at investors.sylvamo.com.
Headquartered in Memphis, Tennessee, Sylvamo operates paper mills across North America, Europe, and Latin America, employing over 6,500 people. With net sales of $3.7 billion in 2023, the company remains dedicated to creating products essential for education, communication, and entertainment. Sylvamo’s vision is to be the preferred employer, supplier, and investment choice in the paper industry.
International Paper, based in Memphis, Tennessee, specializes in renewable fiber-based packaging and pulp products. With approximately 39,000 employees worldwide, the company reported net sales of $18.9 billion in 2023.
