International Paper to close facilities in California, Kentucky

Packaging Dive reported the development on 2025-11-14. More than 200 employees will be affected by the closures. This brings the tally of workers affected by IP’s streamlining to more than 4,500 since October 2024.

The report places the news in a wider commercial context. International Paper announced Friday it plans to close a facility in Compton, California, and another in Louisville, Kentucky, by January 2026. A total of 218 employees will be affected: 125 at Compton and 93 in Louisville. The company says it will work to minimize the impact on employees and will provide outplacement assistance, access to mental health support resources and severance benefits.

For the food sector, the practical implications extend beyond the immediate announcement. “Making the decision to close a facility is incredibly difficult, especially knowing the impact it has on our team members and their families,” said Tom Hamic, executive vice president and president of North American Packaging Solutions, in a statement.

Attention now turns to how companies, customers and regulators respond. The company says in a news release that it’s undergoing a “transformational journey to become a stronger sustainable packaging solutions company” and streamlining its footprint is a critical step. Last year, CEO Andy Silvernail launched an 80/20 business optimization plan shortly after he joined the company, which has resulted in a sweeping company reorganization.