International Paper Expands North American Restructuring Plan

Paper Recycling  |  2026-06-29 06:06:04   |   By

Additionally, it seeks to improve efficiency, strengthen competitiveness, and focus investments on higher-return assets.

Summary
  • Four facilities to close: International Paper will shut down its preprint operation in Richwood, Kentucky, sheet plant in Aurora, Illinois, and converting facilities in Elk Grove, California, and Barrington, New Jersey by the end of Q3 2026.
  • Focus on operational efficiency: The restructuring is intended to lower operating costs, expand production capabilities, and enhance customer service across its North American packaging network.
  • Employee and customer support: Affected employees will receive severance, continued benefits, and career transition assistance, while production will be shifted to other facilities to minimize customer disruption.

SEATTLE (Scrap Monster): International Paper has unveiled a new phase of its North American restructuring strategy. The company announced plans to shut down four packaging-related operations by the end of the third quarter of 2026. Additionally, it seeks to improve efficiency, strengthen competitiveness, and focus investments on higher-return assets.

According to the optimization plan, the company plans to discontinue preprint manufacturing at its Richwood, Kentucky, facility. Additionally, it will close its sheet plant in Aurora, Illinois, and converting facilities in Elk Grove, California, and Barrington, New Jersey.

The company noted that the move is designed to enhance the performance of its packaging network by lowering operating costs, expanding production capabilities, and improving service for customers across North America.

Company executives acknowledged that the decision will affect employees but emphasized that the restructuring is necessary to position the business for future success. The impacted workers will be provided with severance packages, continued benefits, and career transition assistance to ease the process.

In order to minimize disruption for customers, production from the affected facilities will be transferred to other plants within the company's regional manufacturing network.

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