International Paper (IP) to Close Two Georgia Mills; $728M Estimated Charges

International Paper Company announced on August 20, 2025, planned permanent closures of its Riceboro, GA and Savannah, GA containerboard operations as part of its 80/20 strategic approach.

Rhea-AI Filing Summary

International Paper Company announced on August 20, 2025, planned permanent closures of its Riceboro, GA and Savannah, GA containerboard operations as part of its 80/20 strategic approach. Riceboro will cease all operations by September 12, 2025, reducing containerboard capacity by ~430,000 tons and leading to estimated aggregate pre-tax non-cash charges of ~$170 million and aggregate pre-tax cash severance/shutdown charges of ~$77 million, with ~300 employees affected. Savannah will cease all operations by September 30, 2025, reducing capacity by ~1,000,000 tons and leading to estimated aggregate pre-tax non-cash charges of ~$400 million and aggregate pre-tax cash severance/shutdown charges of ~$81 million, with ~680 employees affected. The company expects total aggregate pre-tax cash charges of approximately $158 million and pre-tax non-cash accelerated depreciation charges of approximately $570 million, recorded during the quarter ending September 30, 2025. A press release was furnished as Exhibit 99.1.

Positive

• Strategic focus through the 80/20 approach aims to align investments with the company's most strategic customers
• Clear timelines and estimated charges are provided, improving disclosure transparency for investors

Negative

• Material capacity reduction of approximately 1.43 million tons of containerboard, which is significant to North American supply from these mills
• Large near-term charges: approximately $570 million in pre-tax non-cash accelerated depreciation and ~$158 million in aggregate pre-tax cash severance and shutdown charges
• Workforce impact: expected reductions of ~980 employees across the two facilities

Insights

Financial Analyst

TL;DR: Material capacity reductions and >$700M combined pre-tax charges materially affect near-term earnings and asset base.

The announced closures remove ~1.43 million tons of containerboard capacity, representing a significant shrinkage in North American supply from these two mills. The company estimates aggregate pre-tax non-cash accelerated depreciation of ~$570 million and cash severance/shutdown charges of ~$158 million to be recorded in the quarter ending September 30, 2025. These one-time charges will reduce reported net income and book value in the quarter recorded; the depreciation write-offs are non-cash but indicate asset impairment. The disclosure is explicit on timing and magnitude; absent additional operating or cost-offset detail, near-term EPS and ROA metrics will be materially impacted by the stated amounts.

Operations Specialist

TL;DR: Strategic consolidation aims to lower costs but removes significant production capacity and workforce.

The 80/20 approach is described as focusing investment on strategic customers and reducing complexity. Operationally, staged shutdowns through mid-September 2025 will eliminate ~980 employees across both sites and 1.43 million tons of capacity, which may improve cost structure if remaining assets absorb demand. The filing provides clear timelines and estimated charges but does not provide post-closure capacity redeployment, logistics impacts, or expected cost savings amounts; therefore operational benefits are stated as strategic intent rather than quantified outcomes.

8-K Event Classification

4 items: 2.05, 2.06, 7.01, 9.01

4 items

Item 2.05 Costs Associated with Exit or Disposal Activities Financial

The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.

Item 2.06 Material Impairments Financial

The company concluded that a material charge for impairment of assets (goodwill, intangibles, etc.) is required.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did International Paper (IP) announce regarding mill closures?

IP announced permanent closures of its Riceboro, GA and Savannah, GA containerboard operations with staged shutdowns completing by September 12 and September 30, 2025, respectively.

How much containerboard capacity will be lost from IP's announced closures?

Approximately 1.43 million tons of containerboard capacity will be removed (about 430,000 tons from Riceboro and 1,000,000 tons from Savannah).

What are the estimated financial charges IP expects from the closures?

Aggregate pre-tax non-cash charges of about $570 million and aggregate pre-tax cash charges of about $158 million are expected to be recorded in the quarter ending September 30, 2025.

How many employees will be affected by the closures?

Approximately 980 employees in total are expected to be impacted (about 300 at Riceboro and about 680 at Savannah).

When will the closure-related charges be recorded?

The company anticipates recording the stated pre-tax charges during the three months ending September 30, 2025.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 08/21/2025 - 09:01 AM Learn about SEC filing dates

0000051434false00000514342025-08-202025-08-200000051434exch:XNYS2025-08-202025-08-20

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (date of earliest event reported): August 20, 2025

International Paper Company

(Exact name of registrant as specified in its charter)

Commission file number 1-3157

 

New York			13-0872805
(State or other jurisdiction of incorporation)			(I.R.S. Employer Identification No.)
6400 Poplar Avenue, Memphis, Tennessee			38197
(Address of Principal Executive Offices)			(Zip Code)

Registrant's telephone number, including area code: (901) 419-9000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Common Stock, $1 per share par value			IP			New York Stock Exchange
Common Stock, $1 per share par value			IPC			London Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.05.   Costs Associated with Exit or Disposal Activities

On August 20, 2025, International Paper Company (the “Company”) committed to mill closures at its Riceboro, Georgia and Savannah, Georgia facilities impacting its Containerboard business. The Company estimates the closures will result in aggregate pre-tax cash charges of approximately $158 million and pre-tax non-cash accelerated depreciation charges of approximately $570 million as further described below. These actions are being undertaken as part of the Company’s 80/20 strategic approach, as announced by the Company in July 2024.

Through the 80/20 strategic approach, we intend to deliver profitable market share growth by striving to be the lowest-cost producer and the most reliable and innovative sustainable packaging solutions provider to our customers across North America and EMEA. As part of the Company’s 80/20 strategic approach, the Company intends to guide investments and align resources to win with our most strategic customers, while reducing complexity and cost across the Company.

Riceboro, Georgia Mill

The Company plans to permanently close its containerboard, timber and lumber mills in Riceboro, Georgia. The containerboard mill will shut down in stages with all operations expected to cease by September 12, 2025. The closure is expected to reduce the Company’s containerboard capacity by approximately 430,000 tons. The Company estimates that the closure will result in aggregate pre-tax noncash asset write-off and accelerated depreciation charges of approximately $170 million and aggregate pre-tax cash severance and other shutdown charges of approximately $77 million, and anticipates that these charges will be recorded during the three months ending September 30, 2025. The Company expects closure of the containerboard mill to reduce its workforce by approximately 300 employees.

Savannah, Georgia Mill

The Company plans to permanently close its containerboard mill and packaging facility in Savannah, Georgia. The containerboard mill will shut down in stages with all operations expected to cease by September 30, 2025. The closure is expected to reduce the Company’s containerboard capacity by approximately 1,000,000 tons. The Company estimates that the closure will result in aggregate pre-tax noncash asset write-off and accelerated depreciation charges of approximately $400 million and aggregate pre-tax cash severance and other shutdown charges of approximately $81 million, and anticipates that these charges will be recorded during the three months ending September 30, 2025. The Company expects closure of the containerboard mill to reduce its workforce by approximately 680 employees.

Item 2.06. Material Impairments

The disclosure under Item 2.05 is incorporated by reference into this item 2.06.

Item 7.01     Regulation FD Disclosure

On August 21, 2025, the Company issued a press release announcing these actions, which is attached as Exhibit 99.1 and is incorporated herein by reference.

The information furnished pursuant to this Item 7.01, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.

Forward-Looking Statements

This Current Report on Form 8-K includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, regarding, among other things, our closures and associated headcount reduction as well as anticipated expense reductions, the expected amount of certain pre-tax charges and the anticipated timing of such pre-tax charges, our 80/20 strategic approach and certain actions described herein. 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. Factors which could cause actual results to differ from such forward-looking statements include, but are not limited to, industry, global, economic and other conditions, as well as other factors, that could affect the closures including the amount of such pre-tax charges and the timing of such pre-tax charges or actions described herein. These forward-looking statements are also subject to the risks and uncertainties relating to the business of the Company 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 (the "SEC") on February 21, 2025, the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 7, 2025, and the Company's Quarterly

Report on Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on August 7, 2025. 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 Current Report on Form 8-K, whether as a result of new information, future events or changes in expectations.

Item 9.01.   Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number						Description
99.1						International Paper Company Press Release dated August 21, 2025.
104						The cover page from this Current Report on Form 8-K, formatted as inline XBRL.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

International Paper Company

Date:

8/21/2025

By:

/s/ Joseph R. Saab

Name:

Joseph R. Saab

Title:

Senior Vice President, General Counsel and Corporate Secretary