23rd May 2025 09:55
(Alliance News) - International Paper Co has announced plans to close five sites in the UK, putting about 300 jobs at risk, following its acquisition of DS Smith.
The Memphis, Tennessee-based packaging maker said it needs to become more efficient and respond to the changing needs of its customers amid "tough trading conditions for the industry".
It has proposed closing five packaging sites in the UK following a strategic review of the region. It did not specify which locations are earmarked for closure.
It also plans to relocate one site, move operations from being 24 hours a day, seven days a week, to 24 hours a day, five days a week at another, and make a "small headcount reduction" at two other locations.
About 300 roles are expected to be affected by the proposals, which are set to come into effect by the end of the year.
International Paper said a consultation process with employees and unions is taking place.
The Memphis-based company makes sustainable packaging and paper and employs about 65,000 staff in more than 30 countries.
At the beginning of the year, it bought UK-based rival DS Smith in a deal worth GBP5.8 billion, creating one of the world's largest packaging manufacturers.
It followed a tougher stretch for the sector, which had seen packaging demand boom during the Covid years thanks to soaring online sales, before unwinding following the pandemic and as surging inflation squeezed consumer demand.
International Paper made a net loss of USD105 million in the first three months of 2025, swinging from a USD56 million profit the prior year – which it said reflected restructuring charges from the closure of a containerboard mill in Louisiana in the US.
International Paper shares fell 0.8% to 3,571.00 pence each on Friday morning in London, giving it a market capitalisation of USD25.67 billion.
By Anna Wise, PA Business Reporter
Press Association: Finance
source: PA
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