International Paper to Close Two U.S. Packaging Plants Amid Strategic Restructuring

Also, the impacts on the employees will be minimized by using attrition and retirements.

SEATTLE (Scrap Monster): International Paper has announced plans to shut down two of its U.S. packaging plants as part of a broader business restructuring initiative. The company confirmed in an official release that operations at its Compton, California, and Louisville, Kentucky facilities will be permanently discontinued by January 2026.

According to International Paper, customers currently served by the two plants will continue to receive uninterrupted services through nearby operational facilities, ensuring a smooth transition.

The closure of the Compton, CA facility is expected to affect approximately 125 employees, while the Louisville, KY plant shutdown will impact around 93 workers. The company stated that it will make efforts to place affected employees in available roles at other International Paper locations. Workforce reductions will be managed in part through natural attrition and retirements to reduce direct job losses.

In addition, impacted staff will receive comprehensive support, including severance packages, professional outplacement services, and access to mental health and wellbeing resources.

Tom Hamic, Executive Vice President and President of North American Packaging Solutions, emphasized the difficulty of the decision, acknowledging the significant personal consequences for employees and their families. He noted that the closures are aligned with International Paper’s long-term strategy to strengthen its position as a sustainable packaging solutions provider and optimize operations for future growth.

“This restructuring step is part of our transformation journey to build a more efficient and resilient business,” the company stated.

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