Full Breakdown
International Paper Announces Closure of Savannah and Riceboro Mills, Impacting 1,100 Jobs
8/22/2025, 8:52:19 AM
Overview of the Closures
International Paper has announced the permanent closure of its facilities in Savannah and Riceboro, Georgia, affecting approximately 1,100 employees. The closures include a containerboard mill and a packaging facility in Savannah, as well as a containerboard mill and timber operations in Riceboro. The shutdowns are set to be completed by the end of September 2025, with the Savannah mill closing by September 30 and the Riceboro mill by September 12.
Reasons Behind the Decision
The company cited a series of strategic changes aimed at enhancing its operational efficiency and customer service as the rationale for the closures. International Paper plans to invest $250 million to convert its Riverdale mill in Selma, Alabama, to produce containerboard, which is expected to be completed by the third quarter of 2026. This investment is part of the company's ongoing transformation journey, which includes divesting its Global Cellulose Fibers business for $1.5 billion.
Economic Impact on the Community
The closures are expected to have significant repercussions on the local economy, particularly in the timber industry. Georgia House Speaker Jon Burns expressed concern that the shutdowns would deal a "devastating blow" not only to the timber industry but also to the economic fabric of Southeast Georgia. Local leaders, including Savannah Mayor Van Johnson and Liberty County Chairman Donald Lovette, have voiced their disappointment, emphasizing the long-standing role of International Paper in the community and the impact on families who have relied on these jobs for generations.
Support for Affected Employees
In response to the layoffs, International Paper has committed to providing severance packages and outplacement assistance to affected employees. Tom Hamic, executive vice president of International Paper's North America Packaging Solutions business, acknowledged the deep impact of these decisions on employees and their families, stating, "We are committed to supporting both our employees and customers as we navigate this transition."
Local organizations, including the Savannah Area Chamber of Commerce and the Liberty County Development Authority, are mobilizing resources to assist displaced workers. Job fairs and training programs are being organized to help employees transition to new employment opportunities.
Official Statements and Community Reactions
Georgia Governor Brian Kemp expressed his deep concern regarding the closures and their implications for both employees and timber growers. He has mobilized state resources to connect affected workers with new job opportunities. Local leaders have emphasized the need for community support, with Pooler Mayor Pro Tem Aaron Henry offering resources for those impacted.
The announcement has elicited mixed reactions from the community. While some view the closures as a necessary step for the company's long-term success, others lament the loss of jobs and the historical significance of the mills in the region.
Conclusion
The closure of International Paper's Savannah and Riceboro facilities marks a significant shift in the local economic landscape, affecting hundreds of workers and their families. As the community grapples with the immediate fallout, efforts are underway to provide support and facilitate transitions for those impacted by this decision. The long-term implications for the timber industry and the broader economy in Southeast Georgia remain to be seen.
