Georgia House Speaker Jon Burns has pledged to support the individuals who are being impacted by International Paper closures.
On Aug. 21, the company announced it will close its packing facility in Savannah, along with the Riceboro containerboard mill and the Riceboro Timber and Lumber mill, by the end of September.
Burns noted in a press release that the unexpected announcement was “highly disappointing” and will hurt local communities in Southeast Georgia, as well as the 1,100 employees who have been let go.
“The Georgia Department of Labor currently estimates that three to four indirect job losses could occur for every direct job lost at the International Paper facilities,” Burns said. “These estimates do not account for the countless farmers and timber growers throughout the region who are facing the loss of their livelihoods due to this unforeseen and devastating blow to Georgia’s timber industry.”
Burns added that despite the challenges, the House remains fully committed to providing every possible opportunity for those affected to move forward and get back on their feet.
In its announcement, the company cited a series of “strategic changes” as the reason for closing down the plants to maintain its “ongoing transformation journey.”
The move is part of an agreement between IP and American Industrial Partners (AIP) to sell its Global Cellulose Fibers (GCF) business for $1.5 billion, a deal expected to close by the end of the year pending regulatory approvals.
Tom Hamic, Executive Vice President and President of International Paper’s North America Packaging Solutions business, stated in a press release that the company understands the impact these closures will have on employees and the broader community.
“We are committed to supporting both our employees and customers as we navigate this transition,” Hamic said. “While difficult, these decisions are essential to positioning International Paper for long-term success, enabling us to focus on the geographies, customers, and products where we can create the most value.”
The company has offered severance packages and provided outplacement services to eligible employees, according to a press release.
“GCF is a strong business, and I’m pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses,” said IP Chief Executive Officer Andy Silvernail. “Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio.”
