International Paper Co. to Close Georgia Mills, Affecting 1,100 Jobs

International Paper Co., headquartered in Memphis, Tennessee, announced on August 21, 2025, that it will permanently close its paper mills in Savannah and Riceboro, Georgia, by the end of September. This decision will result in approximately 1,100 job losses, with about 800 positions affected in Savannah and 300 in Riceboro.

The Savannah mill, established in the mid-1930s by Union Bag and Paper, has been a significant part of the city's economy for nearly 90 years. The Riceboro facility, opened in 1968, was acquired by International Paper earlier this year through the purchase of British papermaker DS Smith.

These closures are part of International Paper's strategy to streamline operations and enhance profitability. Concurrently, the company announced the sale of its pulp division to American Industrial Partners for $1.5 billion, with the transaction expected to close by year's end. Additionally, International Paper plans a $250 million expansion of cardboard production at its Selma, Alabama, mill.

The closures are projected to reduce the firm's containerboard production capacity by 1.43 million tons and will incur $728 million in asset write-downs and severance costs.

Local leaders have expressed deep concern over the job losses and the broader economic impact on the region, particularly on Georgia's timber industry. Savannah Mayor Van Johnson stated, "We are devastated and disappointed by the decision. Our thoughts are with the employees and their families during this challenging time." Georgia House Speaker Jon Burns added, "These mill closures will undoubtedly deal a devastating blow not only to Georgia's timber industry but to the economic fabric of the entire southeast Georgia region."

This development follows previous closures by International Paper, including mills in Louisiana and South Carolina, as the company continues to adjust its operations in response to market conditions.

The Savannah and Riceboro mills have been integral to their communities, providing steady employment and supporting local economies for decades. The Savannah mill, in particular, has been a cornerstone of the city's economy since the 1930s, while the Riceboro facility has operated since 1968.

International Paper's decision to close these mills is part of a broader trend of consolidation and restructuring within the paper and packaging industry. The company has been focusing on streamlining operations and enhancing profitability, as evidenced by the sale of its pulp division and the expansion of its Selma, Alabama, mill.

The closures are expected to have a significant impact on the local economies of Savannah and Riceboro, as well as on Georgia's timber industry. Local leaders and state officials are working to support affected workers and mitigate the economic impact on the region.

In conclusion, International Paper's decision to close its Savannah and Riceboro mills marks a significant shift in the company's operations and has far-reaching implications for the affected communities and industries. As the company continues to adjust its operations in response to market conditions, the focus will be on supporting displaced workers and addressing the broader economic impact on the region.