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MEMPHIS - International Paper (NYSE:IP)(LSE:IPC), a $24.7 billion packaging solutions provider currently trading at $46.80, announced Thursday it is exploring the possibility of building a new sustainable packaging facility in Salt Lake City, Utah, as part of its strategic growth plans to expand manufacturing capabilities in the United States.
The company is considering Utah to increase its regional footprint and better serve customers amid growing demand for sustainable packaging solutions in the western U.S. According to InvestingPro data, analysts anticipate sales growth this year, with revenue forecast to increase by 42%.
"This exploration is part of Packaging Solutions North America’s strategic growth initiative to enhance our regional manufacturing footprint in the U.S. Salt Lake City would be a new market for IP," said John Berry, Group Vice President and General Manager, Packaging Group West.
The announcement follows the company’s recent groundbreaking of a new packaging facility in Waterloo, Iowa. If pursued, the proposed Salt Lake City facility would feature advanced technology to deliver packaging solutions to customers in the western United States.
International Paper has not yet disclosed specific details regarding capital investment, facility size, or potential employment opportunities, noting that such information will be shared later in the evaluation process.
The company, which acquired DS Smith in 2025, currently employs more than 65,000 people with operations in over 30 countries. International Paper reported net sales of $18.6 billion for 2024. With a robust dividend history spanning 55 consecutive years and a current yield of 3.93%, the company maintains a FAIR financial health score according to InvestingPro’s comprehensive analysis. For deeper insights into IP’s growth prospects and detailed financial metrics, investors can access the full Pro Research Report, available exclusively on InvestingPro.
The information in this article is based on a company press release statement.
In other recent news, UBS analysts have initiated coverage on International Paper with a Buy rating, highlighting the company’s potential for growth in the paper packaging sector. They project approximately 50% EBITDA growth from 2025 to 2027, driven by linerboard price increases and cost savings. UBS’s estimates are $400 million higher than consensus, with expectations for margins to approach 19% by 2027. Meanwhile, Truist Financial Corporation reports rising containerboard prices in Italy and Spain, which could positively impact companies like International Paper. This price increase aligns with the €60/MT hike initiated by European producers, suggesting a broader trend across the region.
In another development, Georgia-Pacific announced the closure of its Cedar Springs, Georgia mill, reducing industry capacity by about 1 million tons. Analysts at Jefferies view this as a stabilizing factor for the market, potentially increasing operating rates. Citi analysts also see this closure as beneficial for companies such as International Paper, WestRock, and Packaging Corporation of America, helping to maintain the balance between supply and demand. The closure is part of a series of industry capacity reductions, responding to declining demand for containerboard.
Additionally, Domtar is considering converting its Gatineau, QC mill to containerboard production amid declining graphic paper demand. This potential shift reflects broader industry challenges and strategic asset repurposing efforts. These developments indicate significant shifts in the paper and packaging industry, as companies navigate changing market conditions and demand dynamics.
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