International Paper announced the launch of a strategic review for its global cellulose fibers (GCF) division, which generated $2.9 billion in revenue in 2023, while confirming the impending closure of its Georgetown, S.C. mill by the end of 2024. This GCF business produces high-quality absorbent pulp, supporting health and wellness applications in products such as feminine care and incontinence items, as well as sustainable specialty pulp for various industrial sectors like textiles, construction materials, and coatings. This shift aligns with International Paper’s strategic focus on sustainable packaging solutions, with Morgan Stanley & Co. LLC retained as a financial advisor to support the GCF review process.
Chairman and CEO Andy Silvernail emphasized the company’s commitment to shareholder value amid these restructuring efforts. Clay Ellis, Senior Vice President of Global Cellulose Fibers, stated that GCF’s new direction will focus on accelerating earnings by targeting the most strategic clients in the global fluff pulp market, employing an 80/20 strategy to streamline the business. International Paper’s GCF business operates across three countries with eight mills and two converting facilities.
The Georgetown mill, a major producer with an annual output of approximately 300,000 tons of fluff pulp used in products like baby diapers and incontinence care, will close in stages, reaching full shutdown by year-end. The company intends to retain 100% of the mill’s production capacity by redistributing output to other mills, minimizing reliance on commodity pulp grades. The mill’s uncoated freesheet paper production, contracted to Sylvamo, will cease by December 31, 2024, following mutual agreement between the companies.
The closure will impact 674 employees, including 526 hourly and 148 salaried staff.
