News Summary
International Paper has decided to permanently shutdown its Riceboro plant and two additional facilities in Savannah, leading to an estimated loss of 1,100 jobs in Coastal Georgia. The decision has left community leaders shocked, as Savannah has relied on papermaking for nearly 90 years. Plans for a Job Palooza event aim to assist displaced workers in finding new opportunities. The closures highlight significant challenges within the industry amidst ongoing consolidation, raising concerns about local economic stability and communication between international corporations and community leaders.
Savannah, Georgia – International Paper has announced the permanent shutdown of its Riceboro plant and related timber and lumber operations, along with two additional plants in Savannah. This move will result in an estimated loss of approximately 1,100 jobs in the Coastal Georgia region, with 792 jobs directly affected in Savannah. The decision comes amidst ongoing industry consolidation and has left many workers and local economic leaders in shock.
The closures are particularly alarming for the Savannah community, which has relied on papermaking for nearly 90 years. The impact extends beyond the immediate job losses, raising concerns about repercussions for local subcontractors and the broader industrial community. Local officials and community leaders have expressed frustration over what they describe as a lack of communication from International Paper regarding the impending closures. Local leaders were reportedly informed of the shutdown just moments before the public announcement.
International Paper’s decision is part of a strategy to concentrate its operations at its paper mill in Selma, Alabama. The announcement follows a troubling report from the company indicating a 5% drop in cardboard packaging sales in the second quarter compared to the previous year. This downturn could signal broader challenges within the industry, which is currently undergoing significant consolidation. International Paper recently acquired rival DS Smith, further solidifying its position in the North American market.
In light of the job losses, plans are in place for a Job Palooza on September 11 and 12. This event aims to connect displaced workers with new job opportunities and will be coordinated by RISE (Regional Industry Support Enterprise) in collaboration with local governments and organizations, including Savannah Technical College. Local community leaders are hopeful that this job fair will provide some relief for those impacted by the closures.
Economic impact studies estimate that improvements necessary to keep the Riceboro plant operational would have cost about $600 million, making continued operation unfeasible. Additionally, International Paper is intending to sell its cellulose fiber plant in Port Wentworth as part of a larger $1.5 billion agreement with American Industrial Partners.
Despite ongoing discussions and efforts by local officials to keep the mills operational, the decision by International Paper to close the facilities was reportedly made without local engagement. This lack of involvement has left community leaders feeling sidelined in a process that significantly affects the local economy.
The closure of these mills marks a significant change for Savannah’s economic landscape, raising alarms for future job stability in the region. With the local economy heavily reliant on the papermaking industry, these developments pose a challenge for workers and families left without income and benefits. Community leaders are urging international corporations to consider the human impact of such large-scale decisions in their operations.
As the community grapples with the consequences of these closures, local leaders vow to support displaced workers in the transition while advocating for enhanced communication in future corporate actions to ensure a more transparent approach to such significant local changes.
Deeper Dive: News & Info About This Topic
- Times Free Press: International Paper Ignored Local Incentives
- Google Search: International Paper Savannah closures
- Savannah Now: Job Fair After International Paper Closures
- Encyclopedia Britannica: Papermaking
- AJC: Why Is a Paper Giant Leaving Savannah?
- CoStar: International Paper to Close Georgia Packaging Plants
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.
