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International Paper Announces Facility Alignment in the Rio Grande Valley as Part of Strategic Growth Initiative in North America

1. IP consolidates operations in Rio Grande Valley for customer service improvements. 2. Edinburg plants closing, investing in McAllen facility for capability enhancements. 3. New, modern facility in Reynosa is under construction to streamline operations. 4. Employee impact minimized through natural attrition and open positions in McAllen. 5. Strategic investments aim for profitable growth and competitive cost structure.

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FAQ

Why Bullish?

The operational consolidation and investment in facilities should enhance efficiency, potentially boosting profits. Historical examples, such as similar consolidations leading to improved performance, support this positive outlook.

How important is it?

The article details significant operational changes that can influence future profitability directly; thus, it holds substantial importance for investors.

Why Short Term?

The immediate impact from operational changes and employee transitions will be felt in the coming quarters, particularly in adjusted productivity and cost reductions.

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DS Smith
, /PRNewswire/ -- International Paper (NYSE: IP; LSE: IPC) today announced the consolidation of its operations in the Rio Grande Valley to better serve customers.  As part of its strategic growth initiative, and commitment to the Rio Grande Valley, the company will make strategic investments to convert the current Edinburg, Tex. sheet plant into a warehouse, invest in its current facility in McAllen, Tex. to increase capabilities and  shift its current Reynosa, Mexico operations to a new, more modern and capable facility that is currently under construction in Reynosa. The company will close its box plant and sheet plant in Edinburg, Tex.   "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, International Paper.  The company's goal is to minimize the impact to affected employees through natural attrition, retirements and open positions at other IP facilities, including open positions at our McAllen, Tex. facility. The company will assist employees and customers through this transition.  About International PaperInternational Paper (NYSE: IP; LSE: IPC) is the global leader in sustainable packaging solutions. With company headquarters in Memphis, Tennessee, USA, and EMEA (Europe, Middle East and Africa) headquarters in London, UK, we employ more than 65,000 team members and serve customers around the world with operations in more than 30 countries. Together with our customers, we make the world safer and more productive, one sustainable packaging solution at a time. Net sales for 2024 were $18.6 billion. In 2025, International Paper acquired DS Smith creating an industry leader focused on the attractive and growing North American and EMEA regions. Additional information can be found by visiting internationalpaper.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements reflect management's current views and are subject to risks and uncertainties that could cause actual results and the timing of events to differ materially from those expressed or implied in these forward-looking statements. These risks and uncertainties include the risks that we will be unable to realize the anticipated benefits of our consolidation and alignment efforts in the Rio Grande Valley as part of our North America strategic growth initiative. These forward-looking statements are also subject to the risks and uncertainties contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission ("SEC") on February 21, 2025, and subsequent reports filed with the SEC. In addition, other risks and uncertainties not presently known to the Company or that we currently believe to be immaterial could affect the accuracy of any forward-looking statements. The Company undertakes no obligation to publicly update any forward-looking statements contained in this press release, whether as a result of new information, future events or changes in expectations. SOURCE International Paper WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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