(The Center Square) – International Paper said Thursday it is closing three mills in southeast Georgia, which will result in the loss of 1,100 jobs.
The closure of the company’s Savannah containerboard mill and packaging facility and nearby Riceboro’s containerboard mill and timber and lumber facility will begin in phases next month, according to information from the company.
The closures are part of a strategic change that includes a $250 million investment at a plant in Selma, Ala., the company said.
“We understand how deeply these decisions affect our employees, their loved ones, and the surrounding communities,” said Tom Hamic, executive vice president and president of International Paper’s North America Packaging Solutions business. “We are committed to supporting both our employees and customers as we navigate this transition.”
House Speaker Jon Burns, who represents nearby Newington in Effingham County, said the closure will deal a blow to the entire southeast Georgia region and the state’s timber industry.
“I, along with each member of our delegation in the House, remain committed to working tirelessly with our state leaders, federal partners and timber producers to navigate this difficult transition, secure new employment opportunities for the hundreds of citizens impacted by the closures and safeguard the long-term strength and viability of Georgia’s timber industry,” Burns said.
The timber industry experienced about $1.28 billion in losses after remnants of Hurricane Helene swept through the state last September, according to the Georgia Forestry Commission.
Gov. Brian Kemp signed a bill in May that creates a reforestation tax and allows local governments to suspend harvest tax collections.
Savannah Mayor Van Johnson said he was disappointed to hear about the plant’s closure.
“Through seasons of change and challenge, International Paper has emerged to be a great corporate partner to our community,” Johnson said. “My greatest concern is for the 650 valued employees and families whose lives are directly impacted by this decision, especially during these challenging economic times.”
Trip Tollison, president and CEO of the Savannah Economic Development Authority, said his organization is preparing to help affected workers.
“Work Source Georgia’s Rapid Response, which is part of the Technical College System of Georgia, the Department of Labor and others organizations are already mobilizing to assist the impacted workers,” Tollison said. “Additionally, SEDA is in contact with industries in the region about opportunities and will do everything we can to help these employees.”
