International Paper announced it will close two facilities as part of an effort to rework its footprint in the Rio Grande Valley along the United States-Mexico border.
It will close a box plant and sheet plant in Edinburg, Texas. This will affect 117 employees, a spokesperson said via email.
IP also plans to make investments in the region. It will convert the current Edinburg sheet plant into a warehouse and expand an existing facility in McAllen, Texas. The company’s website classifies McAllen as a container plant. As a result of the investment, 40 new hourly positions will be created at McAllen, the spokesperson said.
In addition, IP intends to shift its operations in Reynosa, Mexico, to a more modern facility under construction there.
The company plans to assist both customers and employees affected by the closures and realignment. It aims to “minimize the impact to affected employees through natural attrition, retirements and open positions at other IP facilities,” including open positions at the McAllen facility, according to a news release.
"The decision to cease operations at our two Edinburg facilities while investing in McAllen and Reynosa allows us to focus our efforts, provide excellent customer experiences and maintain a competitive cost structure that we believe positions us for profitable growth," said Tom Hamic, executive vice president and president of packaging solutions North America, in a statement.
Upon joining IP as CEO in May 2024, Andy Silvernail launched a streamlining strategy to return the company to profitability, which has resulted in numerous facility closures and at least 2,100 layoffs since autumn. In February, the company announced it would close four facilities in four states — including the Red River containerboard mill in Campti, Louisiana — collectively impacting 674 employees.
Analysts have predicted for months that International Paper would continue its optimization into 2025, which would likely bring more facility closures, although they have not offered firm numbers. IP has not addressed exactly how many more closures and layoffs are expected this year.
During the company’s Q1 2025 earnings call last month, Silvernail said IP has undergone a “step-change improvement” in performance due to the transformation strategy. He also described work to implement the same optimization plan in Europe following the January acquisition of London-based DS Smith.
IP also is divesting five corrugated box plants in Europe, as required by the European Commission for approval of the DS Smith acquisition. Germany-based Palm Group offered to buy those plants, and the deal is expected to close in the second quarter.
Maria Rachal contributed additional reporting to this story.
