International Paper Announces Mill Closures
International Paper Co., one of the world’s largest paper producers, officially announced the closure of two of its major mills in Georgia. The announcement was made on Thursday, August 21, 2025, sending shockwaves through the local communities of Savannah and Riceboro.
The decision will affect approximately 1,100 employees, including 800 in Savannah and 300 in Riceboro. Both mills are scheduled to shut down in phases until the end of September 2025. The Riceboro mill will cease operations by September 12, while the Savannah facility will follow by September 30.
Heavy Impact on Workers and Communities
This decision is a devastating blow to local communities that have depended on International Paper for decades. The Savannah mill, which has been in operation since the 1930s, has long been the backbone of the region’s economy.
Savannah Mayor Van Johnson expressed deep regret over the announcement. He emphasized that the city will provide full support for affected workers, from retraining programs and job fairs to coordination with state labor agencies.
In Riceboro, the closure also delivers a significant hit. The facility, which contributes an estimated $300 million to Liberty County’s economy, represents not only a workplace but also part of the county’s industrial identity.
Business Strategy and Ongoing Investment
Despite shutting down two historic mills, International Paper is not retreating from the industry. Instead, the company announced a $250 million investment to convert Machine 16 at its Riverdale mill in Selma, Alabama. The conversion will shift production from freesheet to containerboard, with completion projected for the third quarter of 2026.
Additionally, International Paper plans to sell its Global Cellulose Fibers division to American Industrial Partners in a deal worth $1.5 billion, expected to close by the end of 2025. This move is part of a broader corporate restructuring aimed at streamlining operations.
Financial Losses and Efficiency Goals
From a financial standpoint, the company expects to take a $570 million asset write-down. Severance and closure costs are estimated at $158 million. Altogether, International Paper anticipates charges in the range of $700–900 million.
The closures will reduce the company’s containerboard production capacity by about 1 million tons annually. Executives described the move as necessary to focus on efficiency and long-term competitiveness in the global packaging market.
Government and Community Response
Georgia state leaders reacted swiftly to the news. Georgia House Speaker Jon Burns pledged support for affected workers, while also warning that the closures would ripple across the regional economy, particularly impacting the timber industry and small businesses.
The Savannah Chamber of Commerce and local economic development authorities have also pledged assistance, from retraining programs to transition support. Organizations including SEDA, RISE, and the Georgia Department of Labor are preparing programs to ease the transition for displaced workers.
Conclusion
The closures of International Paper’s Savannah and Riceboro mills mark one of the most significant developments in the U.S. paper industry this year. While the company seeks to offset the losses with investments in Alabama, the social and economic consequences in Georgia remain profound.
Local communities now face the challenge of adapting to the loss of longstanding industrial anchors. With coordinated support from government, businesses, and development agencies, workers are expected to navigate this transition with greater resilience.
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