International Paper To Close Two Edinburg Facilities, Lay Off Over 130 Workers

Staff Report

EDINBURG, TX — International Paper Co. will close its two production facilities in Edinburg as part of a broader restructuring effort along the U.S.-Mexico border, resulting in significant local job losses.

According to a Worker Adjustment and Retraining Notification (WARN) Act notice filed on May 9, the closures will lead to the layoff of 132 employees in Edinburg, despite the company previously stating 117 positions would be affected. An additional five layoffs were reported in McAllen.

The Edinburg operations included a plant that produced corrugated containers and a sheet plant for paper production. The sheet plant will be repurposed as a warehouse, while production activity shifts to other locations.

As part of the restructuring, International Paper is investing in facility expansions in McAllen, Texas, and Reynosa, Mexico. The McAllen site will gain 40 new hourly positions, the company said. The Reynosa operation is relocating to a newer, more advanced facility currently under construction.

“This decision allows us to focus our efforts, provide excellent customer experiences and maintain a competitive cost structure that positions us for profitable growth,” said Tom Hamic, executive vice president and president of Packaging Solutions North America, in a news release.

Based in Memphis, Tennessee, International Paper operates more than 260 facilities across 30 countries and employs over 65,000 people worldwide. The company has been undergoing a significant downsizing in recent months, cutting more than 2,500 jobs and closing plants in at least nine U.S. states, including Arizona, Illinois, and now Texas.

CEO Andy Silvernail said during an April 30 earnings call that the company has seen a drop in demand for packaging and paper products, with North American demand down 2% in the first quarter—a trend expected to continue into the second quarter.

Source — International Paper Co.