U.S. Pulp & Paper Production Updates & Announcements: Rationalization and Renewal
- John Strunk
- Aug 25
- 4 min read
Updated: Sep 5
The American pulp and paper industry is in the midst of a significant reshaping. While total capacity has been drifting lower for years, recent announcements reveal a mix of permanent mill closures, divestitures and targeted investments in high‑growth grades. The net effect is a leaner industry focused on packaging and tissue, with a tighter balance between supply and demand. Here’s a rundown of what’s happening and what it might mean for employers and professionals.
Capacity Reductions: Mill Closures and Divestitures
Several major producers have announced mill closures in 2025. International Paper shut down its Campti, Louisiana containerboard mill in April[1] and plans to close its Savannah and Riceboro containerboard mills and a packaging facility by September 2025. Those closures, coupled with the sale of the company’s Global Cellulose Fibers business and the conversion of its Riverdale mill to containerboard, will reduce International Paper’s annual containerboard capacity by roughly one million tons[2].
Georgia‑Pacific will permanently close its Cedar Springs, Georgia containerboard mill by August 2025, affecting more than 500 jobs[3]. Smurfit WestRock, formed from the merger of Smurfit Kappa and WestRock, has closed its St. Paul, Minnesota coated‑recycled‑board mill and ceased production at its Forney, Texas containerboard facility[4]. Greif has also shuttered recycled paperboard mills in Fitchburg, Massachusetts and Los Angeles, California due to high operating costs[5].
These closures, along with other cuts, amount to a roughly 5.5 % reduction in North American containerboard capacity this year[6]. Analysts suggest this supply rationalization could mark the beginning of a more balanced market—perhaps even a “golden age” for containerboard—driven by cost discipline and efficiency[7].
Targeted Investments and New Machines
Despite the closures, producers are investing in growth segments. AF&PA’s 2025 capacity survey shows packaging paper capacity grew 4.6 % in 2024, while containerboard capacity slipped only 0.9 %[8]. Four containerboard machines came online in 2023; a new boxboard machine started up in 2024, with another scheduled for later this year, and a new tissue machine is planned for the second half of 2025[8]. These additions are concentrated in unbleached packaging papers and tissue—grades benefiting from e‑commerce and hygiene demand—while printing‑writing capacity fell 6.9 % in 2024[9].
International Paper’s investment in converting the #16 machine at its Riverdale mill to containerboard demonstrates the shift from declining graphic‑paper grades to packaging[2]. Such conversions support future growth while replacing older, less efficient assets.
Toward a Balanced Market
Industry observers note that the combination of closures and selective expansions could move the containerboard sector from oversupply to equilibrium. Analysts believe supply rationalization will allow producers to run machines harder, improve margins and support pricing power[7]. AF&PA data show the sector’s operating rate rose to 87.5 % in 2024, indicating better utilization of remaining assets[10].
Implications for Employers and Professionals
For companies operating in pulp and paper, the current environment calls for strategic agility. Firms with modern, cost‑efficient mills should benefit from tighter supply and stronger demand for unbleached packaging and tissue. Those investing in machine conversions or new capacity will need skilled engineers, operators and commercial leaders capable of navigating new product development and market shifts.
For professionals, opportunities may arise at expanding mills and in specialties like packaging development, sustainability and automation. Conversely, closures can mean workforce reductions and talent displacement in regions like Louisiana and Georgia. Experienced managers, engineers and sales professionals with cross‑disciplinary expertise—especially those who understand both legacy paper processes and modern packaging technologies—will be in demand as mills adapt or repurpose their assets.
At Windermere Executive Search & Recruitment, we monitor these industry dynamics closely. Our extensive network in pulp & paper and related heavy‑industry sectors allows us to connect companies facing change with leaders who can drive performance in a shifting landscape. Whether you are planning a new search or exploring your next career move, feel free to reach out for a confidential conversation.
Aerial view of a pulp and paper mill | John Strunk | Executive Search & Recruitment Insights and Trends for Heavy Industry
Further Reading
AF&PA 2025 Capacity Survey: Highlights changes in U.S. paper and paperboard capacity by grade[8].
Packaging Dive Analysis: Discusses how mill closures have removed about 5.5 % of North American containerboard capacity and the potential for a “golden age” in the sector[7].
ResourceWise Closure Report: Summarizes notable 2025 mill closures across International Paper, Georgia‑Pacific, Smurfit WestRock and Greif[11].
Disclaimer
This article is provided for informational purposes only and reflects publicly reported data and analyst commentary as of August 2025. It does not constitute financial or investment advice. Market conditions and company strategies can change rapidly; readers should consult industry reports and professional advisers when making business decisions. Windermere Executive Search & Recruitment is not responsible for actions taken based on this content.
[2] International Paper Announces Strategic Changes
[6] [7] Containerboard capacity has shrunk nearly 6% in 2025. That may rebalance the market. | Packaging Dive
John Strunk