International Paper announces plant closures for Savannah and Riceboro

[Outlier]

I was shocked when I found out. My dad retired from there about 10 years ago. Worked there for 42 years.

International Paper announces closure of Savannah, Riceboro locations

International Paper has announced that it will close its locations in Savannah and Riceboro.

www.wtoc.com

 

[Hayata]

These are containerboard mills. The paper is used to make corrugated boxes. Or cardboard boxes to most folks.

IP has a new CEO and is trying to go after profitable business vs flood the market. Perfect case: Amazon. Lots of volume but prices are below what a box plant can make it for. Money is made at the mills but not the box plants. When you are vertically integrated it makes sense to go after this business because it can keep your mills running. Downtime at a paper mill is very expensive so sometimes it makes sense to sell enough volume to avoid the DT even though your box plants (the ones that turn the paper into boxes) aren't making money.

They also announced the sale of their cellulose fiber business. CF is used in absorbent products like diapers. They are focusing on their packaging (box) business.

Their fine paper business was spun off in '21 and is now called Sylvamo. Their paper is used in magazines, etc. Sylvamo is doing well in the stock market.

IP's stock was up over a dollar today, which is a fairly rare occurrence. Wall street approves of the move.

I hate to hear the news of folks losing their jobs. Savannah mill was built in mid 1930's. Unfortunately the closure is affecting generational employees. My prayers go out to all of those affected.

Unfortunately when you work for a corporation you are at the whim of business conditions/company direction. Kinda like if you worked at a plant making 8-track tape players back in the day.

 

[Cadcom]

Ga Pacific just closed the Cedar Springs container board plant way down in SW Georgia. Over 500 jobs eliminated.

 

[BIKER13]

reckon it will smell better down there?

 

[Dan Muk]

I’ve been in and serviced machinery in all the mills mentioned in this post thus far. Even though these corporations continually spent many millions on capitol projects I was involved in over years, the writing was always on the wall. Every year more and more shut down. It started up north and out west decades ago and now it will continue on in the southeast. Chinese corporations are absorbing this industry as well.

 

[olerambler]

These are containerboard mills. The paper is used to make corrugated boxes. Or cardboard boxes to most folks.

IP has a new CEO and is trying to go after profitable business vs flood the market. Perfect case: Amazon. Lots of volume but prices are below what a box plant can make it for. Money is made at the mills but not the box plants. When you are vertically integrated it makes sense to go after this business because it can keep your mills running. Downtime at a paper mill is very expensive so sometimes it makes sense to sell enough volume to avoid the DT even though your box plants (the ones that turn the paper into boxes) aren't making money.

They also announced the sale of their cellulose fiber business. CF is used in absorbent products like diapers. They are focusing on their packaging (box) business.

Their fine paper business was spun off in '21 and is now called Sylvamo. Their paper is used in magazines, etc. Sylvamo is doing well in the stock market.

IP's stock was up over a dollar today, which is a fairly rare occurrence. Wall street approves of the move.

I hate to hear the news of folks losing their jobs. Savannah mill was built in mid 1930's. Unfortunately the closure is affecting generational employees. My prayers go out to all of those affected.

Unfortunately when you work for a corporation you are at the whim of business conditions/company direction. Kinda like if you worked at a plant making 8-track tape players back in the day.

You will see them start selling off their timber lands . Same way other timber companies have done across the Southeast.

 

[Edog537]

reckon it will smell better down there?

Not a chance. Hell the plant probably masked the smell coming from the local populace.

 

[fuelman1]

reckon it will smell better down there?

Yes it will. Some days when the wind is right I get a whiff of the Riceboro plant. You always smell it on 95. It's a shame it's closing. Local Riceboro folks are going to have to learn to commute. There's Rayonier in Jesup and Georgia Pacific in Brunswick. There's also the Chemtol plant next door to the mill but they don't have near enough jobs to take these people in.

 

[roundhouse]

Ga Pacific just closed the Cedar Springs container board plant way down in SW Georgia. Over 500 jobs eliminated.

When I was trucking i went to Cedar Springs regularly




was a long day to pickup a load led trailer from the rail yard in East Point and deliver it in Atlanta metro, then take the empty trailer to cedar springs and get it loaded and be back in East Point by 10 PM to get it on the train .
With my 350 horsepower cabover International


And the mill in Cottonton Alabama right below Columbus too


You’d think with all the Amazon deliveries that there would be more demand for boxes and stuff but apparently not ?

 

[roundhouse]

Maybe some of these folks can get a job at the new car factory that’s being built

Is it sort of nearby ?