International Paper, one of the world’s largest packaging and paper producers, has announced the closure of two of its packaging plants in the United States, citing the need to optimize operations amid shifting market dynamics. The decision reflects broader trends affecting the packaging industry, including overcapacity, inflationary cost pressures, and evolving customer demand.

According to Pulp & Paper News, the facilities affected are located in Chicago, Illinois and Dallas, Texas. Both sites are focused on corrugated packaging production and employ a combined workforce of several hundred employees. The company stated that operations at these plants will wind down over the coming months, with some production being redirected to other facilities in its North American network.

The closures are part of International Paper’s ongoing efforts to improve manufacturing efficiency and network flexibility. As demand patterns shift—particularly in e-commerce and retail sectors—the company is seeking to align its production footprint with regional growth areas and invest in high-performing assets.

“We are continuously evaluating our operations to ensure we are positioned to serve customers effectively and competitively,” said a company spokesperson. “While these decisions are never easy, they are necessary to maintain long-term sustainability.”

The affected plants have been in operation for decades and played a key role in supplying corrugated packaging to clients in food, beverage, and industrial markets. However, rising input costs, supply chain challenges, and increased automation in newer facilities have reduced the strategic importance of these legacy sites.

This move is not isolated. Across the packaging industry, major players are consolidating operations, automating production lines, and prioritizing investments in modern, energy-efficient plants. International Paper has indicated that capital saved from these closures will be reallocated to upgrade technology in remaining facilities and to enhance sustainability initiatives.

Labor unions and local officials have expressed concern over the impact on employment and regional economies. The company has stated it will work with affected employees to offer support, including severance packages, job placement assistance, and relocation opportunities where possible.

As the packaging landscape becomes more competitive and sustainability-driven, companies like International Paper are under pressure to streamline operations and build agile supply chains. The closure of these two plants underscores the challenges traditional manufacturing sites face in adapting to a fast-evolving market environment.