News Summary
International Paper has decided to close two pulp and paper mills in Savannah and Riceboro, resulting in approximately 1,100 job losses. This closure, part of a broader strategy to optimize operations amidst declining demand, highlights a troubling trend within Georgia’s paper industry. The shutdown follows similar closures by Georgia-Pacific and is expected to have a significant economic impact on local businesses and the timber industry. Resources are being mobilized to assist affected workers, including job fairs and dedicated websites for job search assistance.
Savannah, Georgia – International Paper has announced the closure of two pulp and paper mills located in Savannah and Riceboro, leading to the loss of approximately 1,100 jobs by the end of the month. This decision, made public on August 21, 2024, is a part of the company’s broader strategy to optimize operations within the pulp and paper sector, which has faced declining demand in recent years.
The shutdown of these mills comes closely on the heels of Georgia-Pacific’s recent closure of its containerboard mill in Cedar Springs, further signaling a troubling trend for the state’s paper industry. These closures will reduce the number of operational paper mills in Georgia from 11 to 8, marking a significant drop from the peak of 18 mills recorded in 1977.
State Commissioner of Agriculture Tyler Harper highlighted the extensive repercussions of these mill closures, indicating that their impact will stretch beyond the immediate job losses. Local businesses, including tire shops, truck dealerships, and restaurants, are expected to feel the economic strain as the industry’s decline reverberates through the community.
The timber industry, in particular, will face significant challenges, with estimates suggesting a loss of 4.5 million tons of Georgia-grown timber due to the closures. This scenario poses a severe threat to around 70 logging crews who will find themselves without a viable outlet for their wood supplies, jeopardizing their payroll and operational stability.
While the mills in Savannah and Riceboro will cease production, the International Paper plant in Rome will continue its operations. The decision to shut down the Coastal Georgia mills is part of a larger optimization plan initiated by International Paper in July 2024. This plan aims to streamline processes as the company adapts to changing market conditions.
In light of the impending job losses, resources are being mobilized to assist affected workers. A jobs fair will be conducted in Liberty County, with additional events planned in Savannah, to help displaced employees find new opportunities. Furthermore, the Georgia Association of Manufacturing is establishing a dedicated website to facilitate connection between these individuals and potential employers.
In terms of future strategies, industry leaders are exploring ways to pivot towards increased use of biomass for wood pellets and alternative fuels, driven by rising demand from European markets. Georgia House Speaker Jon Burns has stressed the need for economically viable solutions to navigate the challenges facing the paper industry, emphasizing the importance of job retention and industry sustainability.
Since October 2023, the paper industry has experienced significant turmoil, with approximately 3,600 jobs lost due to various closures instigated by International Paper and others within the sector. The Savannah mill, which has been in operation for over 85 years and was acquired by International Paper in 1999, along with the Riceboro mill, which started operations in 1968 and was acquired in 2017, will both leave a legacy of output and employment loss within the community.
Analysts have underscored that the closures are reflective of a long-term trend toward decreased demand for pulp and paper products, contributing to a broader decline within the industry. Consequently, the company’s decision to close these mills is expected to reduce International Paper’s annual containerboard production capacity by approximately 1 million tons.
As the situation develops, both local officials and industry leaders are tasked with addressing the immediate impacts of these closures while working towards long-term solutions to support the community and its economy.
Deeper Dive: News & Info About This Topic
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