International Paper to close 5 packaging sites in UK

Late last week, International Paper (IP) confirmed a proposal to close five of its packaging facilities in the United Kingdom which would eliminate approximately 300 jobs.

The Memphis, Tennessee-based packaging company, which finalized its $7.2 billion purchase of DS Smith earlier this year, says the closures are meant to improve efficiencies and respond to evolving customer needs in what are “tough trading conditions for the industry.”

Additional proposals include the relocation of one site, moving from 24/7 to 24/5 operations at another site and “a small headcount reduction” at two other packaging sites in the U.K.

IP has not disclosed which of its U.K. facilities will be impacted by these proposals, but it expects the moves to be implemented by the end of this year.

“A consultation process with employees and unions is ongoing and, until such time as it has progressed, we cannot comment further on its scope or the potential impact on employees,” IP says in a May 23 statement.

In April, the company entered negotiations with German paper company Palm Group for the purchase of five IP corrugated box plants in Europe. The sale was agreed to with the European Commission as a concession of IP’s acquisition of London-based DS Smith.

The facilities include: three in Normandy, France, including one box plant in Saint Amand, one box plant in Mortagne and one sheet plant in Cabourg; one box plant in Ovar, Portugal; and one box plant in Bilbao, Spain.

Both parties expect the sale to close by the end of the second quarter of this year.

During a late-April earnings call, IP CEO Andy Silvernail said the company is on a “transformational journey” with plans to remain focused on its 80/20 strategy that targets its most valuable customers and aligns with resources accordingly.

“We’re going to stay focused on the strategy, tireless in our execution and resolute in building a great company,” he said in April.