International Paper, a global leader in sustainable packaging solutions, recently announced a strategic consolidation of its operations in the Rio Grande Valley. This move is part of the company’s broader growth initiative and commitment to strengthening its presence in the region.
Operational Changes in Rio Grande Valley Facilities
The company plans to convert its current sheet plant in Edinburg, Texas, into a warehouse. In addition, International Paper will invest in its McAllen, Texas facility to expand its capabilities. Meanwhile, the Reynosa, Mexico operations will shift to a new, modern facility currently under construction in Reynosa, enhancing operational efficiency and service capacity.
As a result of these changes, International Paper will close its box plant and sheet plant located in Edinburg, Texas. This consolidation is designed to focus efforts on providing excellent customer experiences while maintaining a competitive cost structure that supports profitable growth.
Leadership Statement
Tom Hamic, Executive Vice President and President of Packaging Solutions North America at International Paper, explained the decision, stating, “The decision to cease operations at our two Edinburg facilities while investing in McAllen and Reynosa allows us to focus our efforts, provide excellent customer experiences, and maintain a competitive cost structure that we believe positions us for profitable growth.”
Employee and Customer Support During Transition
International Paper aims to minimize the impact on employees affected by these operational changes. The company plans to achieve this through natural attrition, retirements, and available openings at other International Paper facilities, including roles at the McAllen facility. Support will be provided to both employees and customers to help navigate this transition smoothly.
About International Paper
International Paper is recognized as a global leader in sustainable packaging solutions. Headquartered in Memphis, Tennessee, USA, with EMEA headquarters in London, UK, the company employs more than 65,000 team members worldwide. Operating in over 30 countries, International Paper serves customers globally with a focus on creating safer and more productive environments through sustainable packaging.
In 2024, the company reported net sales of $18.6 billion. Additionally, International Paper’s acquisition of DS Smith in 2025 established a strong leadership position in the North American and EMEA markets.
Example of Operational Impact
The transition includes converting the Edinburg sheet plant into a warehouse, which will streamline inventory management and distribution for customers in the region. Meanwhile, the new facility in Reynosa will replace the older plant with enhanced technology and capacity, enabling faster turnaround times and improved service levels for clients across Mexico and the U.S. border areas.
Forward-Looking Statements
This announcement includes forward-looking statements reflecting management’s current views on the company’s consolidation and growth strategies in the Rio Grande Valley. These statements involve risks and uncertainties that may cause actual results to differ materially. For further details on such risks, see International Paper’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission on February 21, 2025.
The company disclaims any obligation to update these forward-looking statements publicly due to new information or future events.
Summary
International Paper’s strategic consolidation in the Rio Grande Valley reflects a commitment to improving operational efficiency and customer service while supporting sustainable growth. With investments in upgraded facilities and a focus on minimizing employee impacts, the company is positioned to strengthen its market presence in this key region.