News Summary
International Paper has announced plans to close its factories in Savannah and Riceboro, Georgia, leading to approximately 1,100 job losses. The decision comes amid economic uncertainties affecting the paper sector. The company is redirecting resources by investing in Alabama to focus on containerboard production. Local leaders express concern about the economic impact, and the company plans to offer severance packages to affected workers. This closure signifies a major shift in Savannah’s economic landscape, as the mill has been a key employer in the community for decades.
Savannah, Georgia — International Paper, a leading global paper producer, has announced plans to cease operations in Savannah and Riceboro, Georgia, resulting in approximately 1,100 job losses. The company will shut down its Savannah mill, which has been operational since 1935, and the containerboard mill and packaging facility in Riceboro by the end of September 2025. The Savannah operations will be phased out, concluding on September 30, 2025.
The decision to close these facilities is tied to ongoing economic uncertainty within the paper and packaging sector, exacerbated by factors such as tariffs and inflation. As part of the closure announcement, International Paper indicated that it expects to incur around $481 million in charges related to asset write-offs and shutdown costs. The company is redirecting its resources, investing $250 million to convert an existing facility in Selma, Alabama, to focus on containerboard production instead.
This restructuring effort is aimed at simplifying operations and aligning the company’s resources with its major clients. The closures in Savannah and Riceboro have raised significant concerns among local officials, community leaders, and residents, all of whom are worried about the economic impact of losing such a substantial employer. As one of Savannah’s largest employers, the mill has played a crucial role in the local economy.
In light of the looming job cuts, International Paper has committed to providing severance packages and outplacement assistance for those affected. Local organizations, including the Savannah Economic Development Authority (SEDA) and the Georgia Department of Labor, are collaborating to support displaced workers during this transition period. Community leaders have expressed heartfelt concern over the emotional strain the closure will impose on employees and their families.
International Paper’s stock has faced challenges, with nearly an 11% drop in value this year, reflecting broader issues facing the industry. The company recently executed a strategic move by agreeing to sell its global cellulose fibers business to American Industrial Partners for $1.5 billion, indicating its focus on sustainable packaging solutions.
The Savannah mill’s closing represents not just a loss of jobs but also a significant shift in the economic landscape of the area. Local officials, including the mayor, have voiced their support for the affected employees and communities, underscoring the long-standing contribution of the Savannah operations to local employment.
The announcement leaves a palpable concern in the community as these operations have been a staple of Savannah’s workforce for decades. The city is now facing the challenges of transitioning from such longstanding employment, and local leaders are determined to navigate this difficult period with sensitivity and support for those impacted.
As the closures approach, many in the community are bracing for the economic fallout while the city and local support services work to assist the affected individuals. The importance of proactive measures in workforce development and community support will be crucial in mitigating the adverse effects stemming from International Paper’s decision.
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Author: STAFF HERE AUGUSTA WRITER
AUGUSTA STAFF WRITER The AUGUSTA STAFF WRITER represents the experienced team at HEREAugusta.com, your go-to source for actionable local news and information in Augusta, Richmond County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Arts in the Heart Festival, Westobou Festival, and Masters Week. Our coverage extends to key organizations like the Augusta Metro Chamber of Commerce and Greater Augusta Arts Council, plus leading businesses in manufacturing and healthcare that power the local economy such as Textron Specialized Vehicles, Cardinal Health, and Nutrien. As part of the broader HERE network, including HEREAtlanta.com and HERESavannah.com, we provide comprehensive, credible insights into Georgia's dynamic landscape.
