International Paper sells global cellulose fiber business
#1 Aug. 24, 2025 19:32:55
International Paper sells global cellulose fiber business
International Paper sells Global cellulose fiber business for $1.5 billion and changes packaging production Structure
MEMPHIS, TN — The International Lumber Corporation International Paper (IP) has announced major strategic changes that are fundamentally changing its portfolio of assets. The company has concluded a deal to sell its global cellulose fiber business and announced a capacity restructuring in North America. Sale of Global Cellulose Fibers business: details of the deal The key event was the signing of the final agreement on the sale of the Global Cellulose Fibers (GCF) division to the investment company American Industrial Partners (AIP). Key parameters of the transaction: • Cost: $1.5 billion (subject to adjustment) • Additionally: issue of preferred shares for $190 million • Closing dates: by the end of 2025 (regulatory approvals required) The scale of the business sold
The main products of the business include pulp for manufacturing: • Sanitary and hygienic products (napkins, diapers) • Materials for the construction industry • Paints, coatings and other industrial applications Restructuring of the packaging business in North America In parallel with the sale, IP announced significant changes in its core business, manufacturing packaging solutions. Investments in modernization The company will allocate $250 million to modernize the Riverdale Mill paper mill in Selma, Alabama. As part of the project, machine No. 16 will be converted for the production of cardboard containers. The work is scheduled to be completed in the third quarter of 2026. Closure of enterprises As part of the optimization of the production network, IP permanently will close: Cardboard packaging factories in Savannah and Riseborough, Georgia • Packaging plant in Savannah • A sawmill in Riseborough The closure process will be phased and will be completed by the end of September 2025. Social and economic consequences This restructuring will directly affect about 1,100 employees (both workers and employees) employed at the closed enterprises. The management of International Paper stated that affected employees will receive severance payments and employment support. Upon completion of all the changes, the total IP production capacity for the production of cardboard will be reduced by about one million tons per year. This decision reflects the company's strategic focus on optimizing assets and focusing on key business areas after the sale of the cellulose fiber division. Expert's comment “This deal reflects the trend towards restructuring in the pulp and paper industry. The sale of non-core assets will allow IP to focus on the core packaging business, where the company has a strong competitive position.” Tags: International Paper, pulp, restructuring, timber industry Translated by «Yandex.Translator» Offline
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