International Paper announced a series of actions to further strengthen and optimize its manufacturing system to meet customers? needs. The company will permanently close its containerboard mill in Orange, Texas, and will permanently cease production on two of its pulp machines?the #20 machine in Riegelwood, N.C., and the #4 machine in Pensacola, Fla.
In total, approximately 900 positions will be impacted. Wherever possible, the company?s goal is to minimize the impact on employees by using current vacancies, retirements, normal attrition and other roles at International Paper. The permanent closure of the Orange mill will reduce the company?s containerboard capacity by approximately 800,000 tons.
The company?s remaining containerboard mill system in North America will include 17 mills with an annual production capability of 13 Million tons. The actions in Pensacola and Riegelwood will reduce IP?s pulp capacity by approximately 500,000 tons (300,000 tons fluff pulp and 200,000 tons southern bleached softwood). The company?s remaining pulp mill system will include eight mills with an annual production capability of 2.7MM tons.
The company expects the Orange mill and the #20 machine in Riegelwood to cease production by the end of the year. The #4 machine in Pensacola is currently idled and will not resume production.