International Paper CEO explains Georgetown mill closure | Georgetown SC Business News | postandcourier.com

Nov 01, 2024

Stacks at International Paper can be seen over the treetops and a field in Georgetown on April 23, 2024.

GEORGETOWN — International Paper will shutter its Georgetown mill for the same reason the company is closing four other plants — those facilities are "underutilized," CEO Andy Silvernail said.

In an Oct. 31 earnings call, Silvernail said the company is shutting down those facilities in an effort to slash expenses and "optimize our footprint."

"While we’re confident that these actions are necessary, they include some difficult decisions that impact our team members, their families and the surrounding communities,” Silvernail said.

The Georgetown mill produces about 300,000 tons of fluff pulp, which is used to make baby diapers and similar items. The Memphis, Tenn.-based company has said it plans to shift the local mill's production to other facilities. IP is also ending a contract to make sheet paper for another company.

The global producer is now looking to invest in new sites where plants can be closer to customers and reduce delivery times, Silvernail said.

The CEO called the Georgetown mill closure a cost-cutting measure that would make earnings more consistent. The move will eliminate nearly 700 jobs, including over 500 frontline workers.

Georgetown has long been tied to its paper mill, which was built in 1936 and boosted a local economy ravaged by the Great Depression and the decline of the lumber industry.

By 1942, the Georgetown operation had become one of the largest paper mills in the country.

But the industry has faced difficult headwinds in recent years.

When Silvernail took over as International Paper’s CEO in May, he said the company’s overall performance had declined over the last decade, meaning changes were needed to make it more profitable.

On Oct. 17, International Paper announced it was laying off 650 corporate employees. Four days later, the company said it would close a container facility in Statesville, N.C.

IP employs about 39,000 people worldwide, according to its website. The company's net sales for 2023 were nearly $19 billion.

As local business leaders processed the news of the mill's demise, they said the loss will impact not only the workers and their families but also the suppliers and businesses that rely on the plant.

"We are saddened to learn that International Paper will soon close its mill in Georgetown," Georgetown County Chamber of Commerce President Beth Stedman said. "Today’s announcement has significant implications for the local community and economy."

Stedman, who called International Paper "a valued partner in our community," said its closing will be felt beyond the loss of jobs.

"Through partnerships with schools, nonprofits, and local organizations, International Paper has invested in education, youth initiatives, and community development," Stedman said. "Their dedication to volunteerism and philanthropy showcases their role not just as a business, but as a key stakeholder invested in the well-being of our community."

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