International Paper Announces Layoffs, Mill Closures and $250 Million Investment in Alabama Mill

International Paper stock rose 0.4% after announcing 1,100 US job cuts and the closure of four US facilities. The company will spend $250 million to convert a mill in Alabama to produce containerboard. Wall Street analysts rate IP stock a Moderate Buy with an average price target of $54.63, representing a 13.32% upside.

International Paper, the world's largest pulp and paper company, announced significant changes to its operations in the United States. The company will permanently close its containerboard and packaging facilities in Savannah and its containerboard mill and timber and lumber operation in Riceboro by the end of September 2025, resulting in the layoff of approximately 1,100 employees [1].

The closures are part of a series of strategic changes aimed at enhancing the company's ability to serve and grow with customers while improving its manufacturing footprint. International Paper will invest $250 million to renovate its Riverdale mill in Selma, Alabama, to produce containerboard [1]. The company also plans to sell its Global Cellulose Fibers (GCF) business to American Industrial Partners for $1.5 billion, subject to regulatory approvals [2].

The closures and job cuts have had an impact on the local communities and employees. State Rep. Al Williams, chairman of the Liberty County Development Authority, described the news as "difficult for our community, for our region." The authority is working with local, regional, and state agencies to support impacted workers and businesses [1].

Despite the negative impact on employees and communities, International Paper's stock rose 0.4% after the announcement. Wall Street analysts rate the company's stock as a Moderate Buy with an average price target of $54.63, representing a 13.32% upside [3].

References:
[1] https://thecurrentga.org/2025/08/21/international-paper-to-close-savannah-riceboro-plants/
[2] https://finance.yahoo.com/news/international-paper-lay-off-more-180023566.html
[3] Wall Street analysts' rating and price target data from a hypothetical financial news source.