International Paper to Sell Fibers Business to American Industrial Partners

SEATTLE (Scrap Monster): International Paper (IP), a company based in Memphis, Tennessee, announced a number of strategic adjustments meant to simplify its business practices.

What prompted the sales?

Subject to closing adjustments, the company finalized a deal to sell its Global Cellulose Fibers (GCF) division to American Industrial Partners (AIP) for $1.5 billion. If all regulations are approved, the deal should close by the end of 2025. In keeping with its plan to concentrate on environmentally friendly packaging options, the company had made the decision to examine strategic options for its GCF business.

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The CEO of IP, Andy Silvernail, said that GCF is a solid company and that he is pleased to see them moving to AIP.

Adjustments to North American Pakaging Solutions Business

IP also disclosed adjustments to its North American packaging solutions division. In order to convert the #16 machine at the Riverdale mill in Selma, Alabama, to produce containerboard, it first announced a $250 million investment. The company also announced the permanent closure of the Riceboro containerboard mill, Riceboro Timber and Lumber, the Savannah, Georgia, packaging factory, and the Savannah, Georgia, containerboard mill.

What impacts do the decisions have?

More than 1,000 employees will probably be impacted by the aforementioned adjustments. According to a press release from the corporation, it will also result in a net reduction of its annual containerboard facility of about 1 million tons.