Georgetown Faces Job Losses as International Paper Announces Mill Closure

News Summary

International Paper has announced the closure of its Georgetown, South Carolina pulp and paper mill, impacting 674 jobs by the end of 2024. The decision is part of a larger strategic review of the company, which has already seen over 1,500 job cuts. The mill, which produces 300,000 tons of fluff pulp annually, will cease operations, leaving many in the community uncertain about their future. As International Paper streamlines operations to enhance profitability, the closure signals a significant change in its operational strategy.

Georgetown Faces Job Losses as International Paper Announces Mill Closure

The quaint city of Georgetown, South Carolina, is bracing for a significant shake-up as International Paper has announced that its pulp and paper mill will be closing down permanently by the end of 2024. This decision, which will impact a staggering 674 jobs in the area, is part of a broader strategic review being undertaken by the company.

Job Impacts and Layoffs on the Rise

The impending closure affects not only the operations but also the livelihoods of many in the community, including 526 hourly workers and 148 salaried employees. This latest development is particularly notable as it adds to the growing list of layoffs within International Paper, which has seen the total number of job cuts exceed 1,500 across various states in the past few weeks.

As of now, there hasn’t been any official WARN notice filed concerning the Georgetown mill closure in the state’s public database, leaving many employees and residents in a bit of uncertainty.

What the Mill Does and Future Operations

The Georgetown mill has been churning out around 300,000 tons of fluff pulp, mainly used in products like diapers. Interestingly, it focuses more on fluff pulp than packaging, which is a notable niche in the market. However, even with the closure of the mill, International Paper assures its customers that service will continue from other facilities the company owns. They currently have a supply agreement for uncoated freesheet papers with Sylvamo, which is set to expire at the end of next year.

A Strategic Shift for International Paper

The announcement of the Georgetown mill’s closure is part of a larger trend within International Paper, as they are reviewing several strategic options for their global cellulose fibers business and are even contemplating a potential sale. This plan underscores the company’s intent to streamline its operations and lower costs significantly. The CEO has mentioned that exiting the Georgetown mill is a move towards reducing complexity within the organization.

The Financial Picture

This decision is not just about jobs; it also has financial implications. Company officials have estimated that the closure will contribute to a decrease in earnings for the Global Cellulose Fibers (GCF) business by about $220 million in the fourth quarter due to depreciation expenses. Although the GCF reported $710 million in net sales during the third quarter of 2024, which is down from $725 million in the same quarter the previous year, profits are reportedly on the rise.

Looking Ahead

The news from Georgetown signals a potential shift in International Paper’s operational approach moving forward. The closure reflects a larger strategy focused on necessary capacity reductions and prioritization of their more profitable ventures. While the immediate impact on Georgetown is concerning for both employees and their families, the company seems committed to ensuring that they maintain service levels across their other facilities.

As the details continue to unfold, the community of Georgetown, along with those affected by these job losses, waits to see what lies ahead in the coming months.