International Paper to Close Two Georgia Mills, Cutting 1,100 Jobs
SAVANNAH, Ga. – International Paper Co. announced Thursday that it will close two Georgia paper mills, a move that will eliminate more than 1,100 jobs and mark the end of a facility that has anchored Savannah’s economy for nearly a century.
Savannah and Riceboro Mills Closing
The Memphis-based company confirmed it will shut down its Savannah and Riceboro mills by the end of September. Roughly 800 jobs will be cut in Savannah and 300 in Riceboro, according to filings with state regulators.
The Savannah mill, built in the 1930s, has been a cornerstone employer since the Great Depression. The Riceboro facility opened in 1968 and was acquired by International Paper earlier this year.
Corporate Restructuring and Sale
The closures come alongside a broader restructuring effort. International Paper announced it will sell its pulp division to American Industrial Partners, a private equity firm, for $1.5 billion. That division produces pulp for tissues, diapers, and other absorbent products.
The company said it will take a $700 to $900 million accounting charge tied to the reduced value of its cellulose fiber business, while also writing down $570 million in mill assets. Severance payments and closure costs are expected to total $158 million.
International Paper also plans to invest $250 million to expand its Selma, Alabama mill to boost cardboard production.
Local and Statewide Fallout
Savannah Mayor Van Johnson said he was “devastated and disappointed” by the announcement. Trip Tollison, CEO of the Savannah Economic Development Authority, called it a “terribly sad day for Savannah.”
Georgia House Speaker Jon Burns warned the effects will extend well beyond the workers themselves. “These mill closures will undoubtedly deal a devastating blow not only to Georgia’s timber industry but to the economic fabric of the entire southeast Georgia region,” he said.
Industry Pressures
International Paper is North America’s largest containerboard maker but has struggled with declining profits and market share. Company leaders said the cuts were necessary to simplify operations and focus on geographies and products where the company can remain competitive.
“While difficult, these decisions are essential to positioning International Paper for long-term success,” said Executive Vice President Tom Hamic.
The announcement follows recent mill closures in Campti, Louisiana and Georgetown, South Carolina, where more than 1,100 workers lost jobs combined.
The closure of the Savannah mill, a fixture of the city for 90 years, marks a particularly heavy loss for families and timber workers tied to the industry across Georgia.
Readers in Georgia affected by the mill closures are invited to share their experiences and concerns at SaludaStandard-Sentinel.com.
