International Paper Announces Review of Strategic Options for Global Cellulose Fibers Business and Closure of Georgetown, S.C. Pulp and Paper Mill
International Paper (NYSE: IP) announced a strategic review of its global cellulose fibers (GCF) business, which generated $2.9B in revenue in 2023. The GCF business operates across three countries with eight mills and two converting facilities, producing absorbent pulp for personal care products and specialty applications. Additionally, IP announced the permanent closure of its Georgetown, South Carolina mill by the end of 2024, affecting 674 employees. The Georgetown facility produces 300,000 tons of fluff pulp, which will be transferred to other mills. The company plans to maintain customer relationships while focusing on sustainable packaging solutions.
International Paper (NYSE: IP) ha annunciato una revisione strategica della sua business globale delle fibre di cellulosa (GCF), che ha generato 2.9 miliardi di dollari di entrate nel 2023. L'attività GCF opera in tre paesi con otto impianti e due strutture di conversione, producendo polpa assorbente per prodotti per la cura personale e applicazioni speciali. Inoltre, IP ha annunciato la chiusura permanente del suo stabilimento di Georgetown, Carolina del Sud, entro la fine del 2024, con un impatto su 674 dipendenti. Lo stabilimento di Georgetown produce 300.000 tonnellate di polpa fluff, che sarà trasferita ad altri impianti. L'azienda prevede di mantenere le relazioni con i clienti, concentrandosi su soluzioni di imballaggio sostenibili.
International Paper (NYSE: IP) anunció una revisión estratégica de su negocio global de fibras de celulosa (GCF), que generó $2.9 mil millones en ingresos en 2023. El negocio de GCF opera en tres países con ocho plantas y dos instalaciones de conversión, produciendo pulpa absorbente para productos de cuidado personal y aplicaciones especiales. Además, IP anunció el cierre permanente de su planta en Georgetown, Carolina del Sur, para finales de 2024, afectando a 674 empleados. La instalación de Georgetown produce 300,000 toneladas de pulpa fluff, que se transferirá a otras plantas. La empresa planea mantener las relaciones con los clientes mientras se enfoca en soluciones de empaques sostenibles.
인터내셔널 페이퍼 (NYSE: IP)는 2023년에 29억 달러의 수익을 올린 세계 셀룰로오스 섬유(GCF) 사업에 대한 전략적 검토를 발표했습니다. GCF 사업은 세 나라에서 여덟 개의 공장과 두 개의 가공 시설을 운영하며, 개인 위생 제품 및 특수 용도를 위한 흡수성 펄프를 생산합니다. 또한, IP는 2024년 말까지 사우스캐롤라이나 주 조지타운 공장을 영구적으로 폐쇄하기로 발표했으며, 이로 인해 674명의 직원이 영향을 받을 것입니다. 조지타운 시설은 30만 톤의 플러프 펄프를 생산하며, 이는 다른 공장으로 이전될 것입니다. 이 회사는 고객 관계를 유지하면서 지속 가능한 포장 솔루션에 집중할 계획입니다.
International Paper (NYSE: IP) a annoncé un examen stratégique de son activité mondiale de fibres de cellulose (GCF), qui a généré 2,9 milliards de dollars de revenus en 2023. L'activité GCF est présente dans trois pays avec huit usines et deux installations de transformation, produisant de la pâte absorbante pour des produits de soins personnels et des applications spécifiques. De plus, IP a annoncé la fermeture permanente de son usine de Georgetown, en Caroline du Sud, d'ici la fin de 2024, affectant 674 employés. L'usine de Georgetown produit 300 000 tonnes de pâte fluff, qui sera transférée vers d'autres usines. L'entreprise prévoit de maintenir ses relations clients tout en se concentrant sur des solutions d'emballage durables.
International Paper (NYSE: IP) hat eine strategische Überprüfung seines globalen Zellstoffgeschäfts (GCF) angekündigt, das 2023 einen Umsatz von 2,9 Milliarden Dollar erzielt hat. Das GCF-Geschäft ist in drei Ländern mit acht Mühlen und zwei Umwandlungsanlagen tätig und produziert saugfähige Zellstoffe für Körperpflegeprodukte und Spezialanwendungen. Darüber hinaus gab IP die endgültige Schließung seines Werks in Georgetown, South Carolina, bis Ende 2024 bekannt, was 674 Mitarbeiter betreffen wird. Die Georgetown-Anlage produziert 300.000 Tonnen Fluff-Papier, welches an andere Werke transferiert wird. Das Unternehmen plant, die Kundenbeziehungen aufrechtzuerhalten und sich auf nachhaltige Verpackungslösungen zu konzentrieren.
- GCF business generated substantial revenue of $2.9B in 2023
- Production capacity from Georgetown mill will be retained and transferred to other facilities
- Strategic shift to focus on sustainable packaging solutions
- Reduction in exposure to commodity pulp grades
- Closure of Georgetown mill affecting 674 employees
- Termination of strategic contract with Sylvamo for uncoated freesheet papers
- Potential business restructuring uncertainty during strategic review
Insights
The strategic review of IP's $2.9B revenue Global Cellulose Fibers business signals a significant shift in corporate strategy, potentially leading to a sale or spin-off. This represents roughly
The move to potentially divest GCF would streamline IP's focus on packaging solutions, potentially unlocking shareholder value through better operational focus and capital allocation. The retention of Morgan Stanley suggests serious consideration of major strategic alternatives. The timing aligns with industry trends toward specialized focus rather than diversified operations.
The fluff pulp market remains attractive with growing demand in hygiene products, particularly in emerging markets. IP's strategy to retain Georgetown's production capacity while shifting it to other facilities indicates confidence in market fundamentals. The decision to terminate the Sylvamo paper contract further demonstrates IP's strategic pivot away from traditional paper markets.
This restructuring could position IP more competitively in its core packaging business while potentially creating value through strategic alternatives for the GCF business. The focus on high-value fluff pulp customers through an 80/20 approach suggests improved margin potential in remaining operations.
IP's GCF business creates safe, high-quality absorbent pulp for a wide range of applications like feminine care, incontinence and other personal care products that promote health and wellness. In addition, its specialty pulp serves as a sustainable raw material used in textiles, construction materials, paints, coatings and more. The GCF business generated
"International Paper is committed to maximizing value for our shareholders, and to that end, we have launched a comprehensive and thorough review of strategic options for our global cellulose fibers business," said International Paper Chairman and CEO Andy Silvernail.
"GCF is focused on accelerating earnings by aligning resources with our most strategic fluff pulp customers, implementing an 80/20 mindset and creating a simplified and focused portfolio. Our team is well-positioned to win with attractive customers in the growing global fluff pulp market," said Clay Ellis, Senior Vice President, Global Cellulose Fibers, International Paper. "Throughout our review, we will maintain our strong customer relationships with the same high standards and close collaboration."
International Paper has retained Morgan Stanley & Co. LLC as financial advisor to help review strategic options for the GCF business. The review of strategic options is at an early stage, and there can be no assurance that this review will result in any kind of transaction or other outcome. The Company will provide updates on the progress or status of this matter if and when it deems further disclosure is required or appropriate.
IP to Close
Additionally, the Company announced the permanent closure of its
The
The mill also produces uncoated freesheet papers that it sells to Sylvamo (NYSE: SLVM) pursuant to a strategic contract, which IP and Sylvamo have mutually agreed to terminate as of December 31, 2024.
"This decision is especially difficult because of the impact on hard-working employees, their families and the surrounding communities," said Bernie Chascin,
In total, 526 hourly employees and 148 salaried employees will be impacted. All employees will be offered severance benefits, outplacement services and access to mental health resources.
About International Paper
International Paper (NYSE: IP) is a global producer of sustainable packaging, pulp and other fiber-based products, and one of the world's largest recyclers. Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements reflect management's current views and are subject to risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied in these forward-looking statements. These risks and uncertainties include the risks that this review of strategic alternatives will not result in any transaction or other desired outcome; that we will be unable to realize the anticipated benefits of this review of strategic alternatives; and that we will be unable to realize the anticipated benefits from our closure of the
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SOURCE International Paper
FAQ
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