International Paper Announces Review of Strategic Options for Global Cellulose Fiber Business and Closure of Georgetown, SC Pulp and Paper Mill

MEMPHIS, Tenn, Oct 31, 2024 /PRNewswire/ — International Paper (NYSE: IP) today announced the decision to explore strategic options for its global cellulosic fiber (GCF) business. The decision to explore alternatives for the GCF business is in line with the company's strategy to focus on sustainable packaging solutions.

IP's GCF business produces safe, high-quality absorbent pulp for a wide range of applications, including feminine care, incontinence and other personal care products that promote health and well-being. In addition, its specialty pulp serves as a sustainable raw material for textiles, building materials, paints, coatings and more. The GCF business generates $2.9 billion Sales in 2023 and has operations in three countries with eight mills and two processing plants.

“International Paper is committed to maximizing value for our shareholders, and to that end we have initiated a comprehensive and thorough review of strategic options for our global cellulosic fiber business,” said International Paper Chairman and CEO Andy Silvernail.

“GCF is focused on increasing profits by aligning resources with our most strategic pulp customers, implementing an 80/20 mindset and creating a simplified and focused portfolio. Our team is well-positioned to win with attractive customers in the growing global pulp market,” said Clay EllisSenior Vice President, Global Cellulose Fibers, International Paper. “During our review we will maintain our strong customer relationships with the same high standards and close collaboration.”

International Paper has retained Morgan Stanley & Co. LLC as financial advisor to assist in considering strategic options for the GCF business. The review of strategic options is at an early stage and there can be no assurance that this review will result in any type of transaction or other outcome. The Company will provide updates on the progress or status of this matter if it believes further disclosure is necessary or appropriate.

IP to close Georgetown, SC Pulp and paper mill
The company also announced the permanent closure of its location Georgetown, South Carolina Mill. The plant will be shut down gradually, with complete closure expected at the end of 2024.

The Georgetown The plant produces approximately 300,000 tons of pulp developed for a range of consumer applications, from baby diapers to incontinence products. GCF plans to retain 100% of the mill's pulp capacity by shifting production to other mills and further reducing the company's reliance on bulk pulp grades.

The mill also produces uncoated freesheet papers, which it sells to Sylvamo (NYSE: SLVM) under a strategic agreement that IP and Sylvamo have mutually agreed to terminate December 31, 2024.

“This decision is particularly difficult because it impacts hard-working employees, their families and the surrounding communities,” he said Bernie Chascin, Georgetown Factory Manager, International Paper.

A total of 526 hourly workers and 148 salaried employees are affected. All employees are offered severance pay, outplacement services and access to mental health resources.

About International Paper
International Paper (NYSE: IP) is a global manufacturer of sustainable packaging, pulp and other fiber-based products and one of the world's largest recyclers. Headquarters in Memphis, Tennessee.We employ around 39,000 colleagues worldwide who are committed to shaping the future. We serve customers all over the world with manufacturing facilities in North America, Europe, Latin America And North Africa. Net sales for 2023 were $18.9 billion. For more information, visit internationalpaper.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements reflect management's current views and are subject to risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include the risk that this evaluation of strategic alternatives may not result in a transaction or other desired outcome; that we may not realize the anticipated benefits of this review of strategic alternatives; and that we will not be able to realize the anticipated benefits of our closure Georgetown, South Carolina pulp mill. These forward-looking statements are also subject to the risks and uncertainties contained in the Company's Annual Report on Form 10-K for the fiscal year just ended December 31, 2023filed with the US Securities and Exchange Commission (“SEC”) on February 16, 2024the company's quarterly report on Form 10-Q for the past three months June 30, 2024 filed with the SEC on July 26, 2024and subsequent reports filed with the SEC. In addition, other risks and uncertainties that are not currently known to the Company or that we currently believe are immaterial could affect the accuracy of forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in expectations.

SOURCE International Paper