International Paper has announced plans to cease preprint operations at its Richwood, Kentucky facility and close its sheet plant in Aurora, Illinois, along with converting plants in Elk Grove, California and Barrington, New Jersey, by the end of the third quarter of 2026.

The company said the changes are part of an ongoing strategy to optimize its North American packaging network, improve cost competitiveness and concentrate investment in facilities with the highest operational efficiency and customer value creation.

Network Optimization Supports Long-Term Packaging Strategy

The restructuring reflects a broader trend in the pulp and paper industry, where large packaging producers are continuously adjusting production footprints to align capacity with shifting demand patterns, logistics efficiency and capital allocation priorities.

International Paper stated that affected customers will be transitioned to other facilities within their respective regions to ensure continuity of supply and service levels.

The company emphasized that the restructuring is intended to strengthen its ability to deliver sustainable packaging solutions while improving overall network performance.

Capacity Consolidation and Efficiency Gains

As demand for packaging grades continues to evolve, producers are increasingly consolidating converting and sheet production capacity into larger, more efficient manufacturing hubs.

This approach is aimed at improving asset utilization, reducing operating costs and enhancing the ability to serve regional and national customers with consistent product quality.

Industry observers note that such rationalization efforts are becoming more common across North America as packaging producers respond to cost pressures, energy prices and changing customer demand patterns.

Workforce Transition and Customer Continuity Measures

International Paper said it will provide support to employees affected by the closures, including severance packages, benefits continuation and outplacement assistance.

The company also confirmed that it is working to ensure a smooth transition for customers currently served by the affected facilities, with production being redistributed across its remaining regional network.

Strategic Focus on Sustainable Packaging Solutions

The restructuring aligns with International Paper’s broader positioning as a global provider of sustainable packaging solutions.

The company continues to focus on strengthening its core packaging operations, where demand for fiber-based materials remains supported by e-commerce growth, food packaging demand and ongoing substitution away from plastic-based packaging formats.

Industry Trend: Footprint Rationalization Across Packaging Sector

The move reflects a wider pattern within the pulp, paper and packaging industry, where manufacturers are actively reshaping production networks to improve efficiency and competitiveness.

As capital intensity increases and customers demand more reliable and sustainable supply chains, companies are prioritizing fewer but more strategically located production sites with higher throughput and automation capability.

International Paper’s latest restructuring underscores how established packaging producers are adapting their asset base to remain competitive in a rapidly changing global packaging market.

Last Updated on 30/06/2026 by Jota Machinery