International Paper Restructures North American, Mexican Operations Impacting 134 Employees

International Paper (IP) is undertaking a strategic restructuring of its North American operations to focus on sustainable packaging solutions. The company will exit the molded fiber business, convert its Reno, Nevada facility to packaging, and close its packaging and recycling plants in Marion, Ohio, and Wichita, Kansas, affecting approximately 134 U.S. employees who will be supported with severance and outplacement services. IP is also selling its containerboard mill and recycling plants in Xalapa and Apodaca, Mexico, to Acabados de Papeles Santinados y Absorbentes (APSA), with APSA retaining current Mexican employees. These moves are part of IP’s broader transformation aimed at prioritizing key geographies, customers, and products while enhancing quality, reliability, and service delivery. Financial analysts maintain a Hold rating on IP with a $60 price target, reflecting cautious optimism amid challenging market conditions and the costs associated with restructuring. Overall, IP’s strategic shift positions the company to capitalize on growing demand for sustainable packaging despite potential short-term disruptions and risks during the transition.