International Paper Co. to Close Georgia Mills, Cutting 1,100 Jobs Amid Restructuring

International Paper Co., a leading global producer of paper and packaging products, announced on August 21, 2025, the forthcoming closure of its paper mills in Savannah and Riceboro, Georgia. This decision will result in approximately 1,100 job losses—800 in Savannah and 300 in Riceboro—and is part of the company's broader strategy to streamline operations and enhance profitability.

The Savannah mill, operational since the mid-1930s, has been a significant contributor to the local economy for nearly a century. The Riceboro facility, established in 1968, was acquired by International Paper earlier this year through the purchase of British papermaker DS Smith. The closures are expected to reduce the company's containerboard production capacity by approximately 1.43 million tons and will incur $728 million in asset write-downs and severance costs.

On the same day as the closure announcement, International Paper revealed plans to sell its Global Cellulose Fibers division to American Industrial Partners for $1.5 billion, with the transaction anticipated to close by the end of the year. Additionally, the company plans a $250 million investment to expand cardboard production at its Riverdale mill in Selma, Alabama. These strategic moves reflect International Paper's focus on sustainable packaging solutions and efforts to optimize its manufacturing footprint.

Local leaders have expressed deep concern over the economic impact of the mill closures. Savannah Mayor Van Johnson stated, "We are devastated and disappointed by the decision." Georgia House Speaker Jon Burns highlighted the broader implications, noting that the closures would "deal a devastating blow not only to Georgia's timber industry but to the economic fabric of the entire southeast Georgia region." Liberty County Chairman Donald Lovette acknowledged that local leaders had been aware of potential issues and had worked to keep the Riceboro plant open, but their efforts were ultimately unsuccessful.

The closures are part of a series of shutdowns by International Paper, following the closure of a mill in Campti, Louisiana, earlier this year, which resulted in 470 job losses, and a 675-worker mill in Georgetown, South Carolina, last year. These actions are aligned with the company's ongoing transformation journey to achieve an advantaged cost position and deliver a superior customer experience.

International Paper's strategic realignment underscores the challenges facing the paper and packaging industry, including market fluctuations and the need for operational efficiency. While the company's focus on sustainable packaging solutions aims to position it for long-term success, the immediate impact on the affected communities is profound, with significant economic and social challenges ahead.