International Paper to exit molded fiber business, close facilities

MEMPHIS - International Paper (NYSE:IP; LSE:IPC), a $24.6 billion packaging giant currently trading at $46.48, announced Thursday it will exit its molded fiber business and implement several facility changes as part of strategic adjustments to its North American operations. According to InvestingPro analysis, the company appears slightly overvalued at current levels.

The packaging company plans to convert its Reno, Nevada facility to support its packaging business while closing packaging operations in Marion, Ohio and a recycling facility in Wichita, Kansas. Additionally, the company will sell its containerboard mill in Xalapa, Mexico and recycling plants in Xalapa and Apodaca, Mexico to Acabados de Papeles Santinados y Absorbentes (APSA). The company maintains a solid 4% dividend yield and has consistently paid dividends for 55 consecutive years.

These changes will affect approximately 134 employees in the United States, including 110 hourly and 24 salaried positions. The company stated it will attempt to minimize impact through job placement in existing vacancies, retirements and other internal opportunities, while providing severance and outplacement support where possible.

"These decisions are never easy because of the impact on our employees, their families and the communities in which we operate," said Tom Hamic, executive vice president and president of IP’s Packaging Solutions North America business.

The company indicated these actions are part of its ongoing transformation to become "a more focused and agile provider of sustainable packaging solutions." International Paper aims to prioritize specific geographies, customers and products while investing in facilities to enhance quality and service delivery.

International Paper reported net sales of $18.6 billion for 2024, with current trailing twelve-month revenue reaching $19.9 billion. The announcement comes after the company acquired DS Smith earlier in 2025. InvestingPro data reveals analysts anticipate sales growth in the current year, with multiple additional insights available to subscribers.

The information in this article is based on a press release statement from International Paper.

In other recent news, International Paper is in exclusive negotiations to sell five of its corrugated box plants in Europe to Germany’s PALM Group. This prospective deal includes facilities in France, Portugal, and Spain and is expected to close by the end of the second quarter of 2025, pending regulatory approvals. The sale is a condition set by the European Commission following International Paper’s acquisition of DS Smith Plc, aimed at maintaining competitive balance in the packaging industry. International Paper’s Chairman and CEO, Andy Silvernail, expressed satisfaction with PALM Group as a suitable buyer. The completion of this sale is a significant regulatory step for International Paper. PALM Group, a leading producer of containerboard and corrugated packaging, is poised to expand its operations through this acquisition. BofA Securities and Skadden, Arps, Slate, Meagher & Flom LLP are advising International Paper on this transaction. The closure of the sale remains contingent on certain conditions, and the financial impact is subject to various uncertainties.

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