International Paper Announces Closure of Savannah and Riceboro Locations, Impacting 1,100 Workers

What's Happening?

International Paper has announced the closure of its facilities in Savannah and Riceboro, Georgia, as part of strategic changes aimed at achieving a more advantageous cost position and delivering superior customer experiences. This decision will affect approximately 1,100 hourly and salaried employees. The company plans to offer severance packages and outplacement assistance to those impacted. The closures are set to occur in phases, concluding by the end of September. Savannah Mayor Van Johnson expressed his disappointment over the closure, highlighting the impact on 650 employees and their families. The Savannah Area Chamber of Commerce and the Savannah Economic Development Authority (SEDA) have also issued statements, emphasizing their commitment to supporting affected workers through collaboration with the Georgia Department of Labor and other local organizations.

Why It's Important?

The closure of International Paper's mills in Savannah and Riceboro represents a significant economic shift for the region, affecting not only the employees but also the broader community and local economy. The mills have been integral to Savannah's commerce for nearly a century, providing jobs and supporting families. The decision underscores challenges faced by the timber industry amid changing markets and economic instability. Georgia's Speaker of the House, Jon Burns, noted the potential impact on the state's timber industry and the Southeast Georgia region's economic fabric. The closures highlight the need for strategic economic planning and support for displaced workers, as well as the importance of attracting new businesses to sustain the local economy.

What's Next?

In response to the closures, local and state leaders are mobilizing resources to assist affected workers. The Technical College System of Georgia and the Department of Labor are involved in efforts to connect employees with new job opportunities. SEDA has scheduled a job fair for September 20 to facilitate employment transitions. Georgia Governor Brian Kemp has emphasized the state's commitment to supporting impacted workers and timber growers, leveraging the state's strong economy to attract new investments and opportunities. The focus will be on ensuring a smooth transition for affected families and maintaining the long-term viability of Georgia's timber industry.

Beyond the Headlines

The closure of these mills may have deeper implications for the timber industry in Georgia, potentially prompting shifts in industry practices and economic strategies. The decision reflects broader trends in corporate restructuring and cost management, which could influence similar actions in other sectors. The community's response highlights the importance of social and economic resilience in the face of corporate decisions that affect local livelihoods. The situation may also prompt discussions on the role of corporate responsibility and community engagement in economic transitions.