International Paper cuts 1,100 jobs by closing mills in Georgia

International Paper Co. decided to close two paper mills in Georgia, including a historic mill in Savannah that has operated for 90 years. The closures are set to occur by the end of September and will impact 1,100 employees at both mills, with the company also announcing plans to take a significant write-down of $570 million on these assets. This decision comes amid a shift in the company's focus towards its packaging business, following the sale of its pulp division for $1.5 billion. The Savannah mill, built during the Great Depression, had been a substantial part of the local economy, and its closure will have major ramifications, not only for millworkers but also on the broader timber industry in Georgia. Savannah’s Mayor Van Johnson expressed devastation over the decision, while local leaders pointed out the severe impact on the economic fabric of southeastern Georgia. After previously shuttering other mills in Louisiana and South Carolina, this move indicates International Paper's ongoing restructuring to simplify operations and increase profitability. The company plans to invest $250 million to expand another facility in Alabama, showcasing its intent to focus on areas where it can drive value.