International Paper Announces Facility Alignment in the Rio Grande Valley as Part of Strategic Growth Initiative in North America

Rhea-AI Summary

International Paper (NYSE: IP) has announced a strategic consolidation of its operations in the Rio Grande Valley. The company plans to:

- Convert the Edinburg, Texas sheet plant into a warehouse
- Close the box plant and sheet plant in Edinburg
- Invest in its McAllen, Texas facility to enhance capabilities
- Relocate Reynosa, Mexico operations to a new, modern facility under construction

The company aims to minimize employee impact through natural attrition, retirements, and transfers to other IP facilities, including open positions at the McAllen location. The restructuring is part of IP's strategic growth initiative to improve customer service and maintain competitive cost structures.

Positive

• Strategic investments in McAllen facility to increase capabilities
• Modernization through new, more capable facility in Reynosa
• Cost structure optimization for profitable growth
• Commitment to employee retention through transfers and open positions

Negative

• Closure of two facilities in Edinburg, Texas
• Potential job losses if employees cannot be relocated
• Operational disruption during transition period

MEMPHIS, Tenn., May 9, 2025 /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC) today announced the consolidation of its operations in the Rio Grande Valley to better serve customers.  As part of its strategic growth initiative, and commitment to the Rio Grande Valley, the company will make strategic investments to convert the current Edinburg, Tex. sheet plant into a warehouse, invest in its current facility in McAllen, Tex. to increase capabilities and  shift its current Reynosa, Mexico operations to a new, more modern and capable facility that is currently under construction in Reynosa. The company will close its box plant and sheet plant in Edinburg, Tex.  

"The decision to cease operations at our two Edinburg facilities while investing in McAllen and Reynosa allows us to focus our efforts, provide excellent customer experiences and maintain a competitive cost structure that we believe positions us for profitable growth," said Tom Hamic, Executive Vice President and President of Packaging Solutions North America, International Paper. 

The company's goal is to minimize the impact to affected employees through natural attrition, retirements and open positions at other IP facilities, including open positions at our McAllen, Tex. facility. The company will assist employees and customers through this transition. 

About International Paper
International Paper (NYSE: IP; LSE: IPC) is the global leader in sustainable packaging solutions. With company headquarters in Memphis, Tennessee, USA, and EMEA (Europe, Middle East and Africa) headquarters in London, UK, we employ more than 65,000 team members and serve customers around the world with operations in more than 30 countries. Together with our customers, we make the world safer and more productive, one sustainable packaging solution at a time. Net sales for 2024 were $18.6 billion. In 2025, International Paper acquired DS Smith creating an industry leader focused on the attractive and growing North American and EMEA regions. Additional information can be found by visiting 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 in these forward-looking statements. These risks and uncertainties include the risks that we will be unable to realize the anticipated benefits of our consolidation and alignment efforts in the Rio Grande Valley as part of our North America strategic growth initiative. 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 ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ("SEC") on February 21, 2025, and subsequent reports filed with the SEC. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any 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.

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SOURCE International Paper

FAQ

What facilities is International Paper (IP) closing in the Rio Grande Valley?

International Paper is closing its box plant and sheet plant in Edinburg, Texas, while converting the current Edinburg sheet plant into a warehouse.

How is IP handling employee transitions from the Edinburg facility closures?

IP aims to minimize impact through natural attrition, retirements, and transfers to other IP facilities, including open positions at their McAllen facility.

What investments is International Paper making in McAllen, Texas?

IP is investing in its McAllen facility to increase capabilities as part of its strategic growth initiative in the Rio Grande Valley.

What changes is IP making to its Reynosa, Mexico operations?

IP is shifting its current Reynosa operations to a new, more modern and capable facility that is currently under construction in Reynosa.

Why is International Paper consolidating its Rio Grande Valley operations?

The consolidation aims to better serve customers, focus efforts, provide excellent customer experiences, and maintain a competitive cost structure for profitable growth.