INTERNATIONAL PAPER CO /NEW/ (IP): restructuring charge — IP to close Orange mill, cease pulp production; expects ~$664M pre-tax charges

INTERNATIONAL PAPER CO /NEW/

Permanent closure of Orange, TX containerboard mill (800K tons capacity); all operations expected to cease by year-end.
Cease production on #4 fluff pulp machine in Pensacola (idled) and #20 machine in Riegelwood; reducing pulp capacity ~500K tons.
Estimated total pre-tax charges of ~$664M: ~$595M noncash asset write-offs/depreciation, ~$69M cash severance/other.
Approximately 900 positions impacted across the three sites; severance and outplacement assistance offered.
After closures, IP will have 17 containerboard mills (13MM tons capacity) and 8 pulp mills (2.7MM tons capacity).

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

INTERNATIONAL PAPER CO /NEW/ announced a restructuring with charges of approximately $395 million affecting Containerboard mill in Orange, Texas (approximately 565 employees).

Type: restructuring
Charge: approximately $395 million
Affected area: Containerboard mill in Orange, Texas
Headcount: approximately 565 employees

Exact text from the filing

The Company plans to permanently close its containerboard mill in Orange, Texas. The containerboard mill will shut down in stages with all operations expected to cease by year end. The closure is expected to reduce the Company’s containerboard capacity by approximately 800,000 tons. The Company estimates that the closure will result in pre-tax noncash asset write-off and accelerated depreciation charges of approximately $395 million and pre-tax cash severance and other shutdown charges of approximately $55 million

View on SEC.gov

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

INTERNATIONAL PAPER CO /NEW/ announced a restructuring with charges of approximately $100 million affecting Global Cellulose Fibers – #4 Fluff Pulp Machine at Pensacola, Florida mill (approximately 100 employees).

Type: restructuring
Charge: approximately $100 million
Affected area: Global Cellulose Fibers – #4 Fluff Pulp Machine at Pensacola, Florida mill
Headcount: approximately 100 employees

Exact text from the filing

The Company plans to permanently cease production on its #4 Fluff Pulp Machine at its Pensacola, Florida mill. The machine had been idle since August 2023 and will not resume production. The Company estimates that the machine shutdown will result in pre-tax noncash asset write-off and accelerated depreciation charges of approximately $100 million and pre-tax cash severance and other shutdown charges of approximately $4 million

View on SEC.gov

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

INTERNATIONAL PAPER CO /NEW/ announced a restructuring with charges of approximately $100 million affecting Global Cellulose Fibers – #20 Fluff Pulp Machine at Riegelwood, North Carolina mill (approximately 200 employees).

Type: restructuring
Charge: approximately $100 million
Affected area: Global Cellulose Fibers – #20 Fluff Pulp Machine at Riegelwood, North Carolina mill
Headcount: approximately 200 employees

Exact text from the filing

Additionally, the Company plans to permanently cease production on its #20 Fluff Pulp Machine at its Riegelwood, North Carolina mill by year end. The Company estimates that the machine shutdown will result in pre-tax noncash asset write-off and accelerated depreciation charges of approximately $100 million and pre-tax cash severance and other shutdown charges of approximately $10 million

View on SEC.gov

3 restructurings & charges filed in the last 30 days. Browse all restructurings & charges →

INTERNATIONAL PAPER CO /NEW/ filing history →

Source: SEC EDGAR

accession 0001193125-23-258136

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