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International Paper To Permanently Cease Operation On One Local Production Machine
October 18, 2023
International Paper will permanently cease operation of one of their production machines in Pensacola, the company said Wednesday.
IP announced a series of actions to further strengthen and optimize its manufacturing system to meet customers’ needs. The company will permanently close its containerboard mill in Orange, Texas, and will permanently cease production on two of its pulp machines – the #20 machine in Riegelwood, N.C., and the #4 machine in Pensacola
Locally, about 100 jobs are expected to be impacted.
“Decisions like these are extremely difficult, because of the impact on our employees, their families and the communities in which we operate,” said Chairman and CEO Mark Sutton. “We are grateful to our employees in Orange, Riegelwood and Pensacola for their significant contributions to the company over the years. We are committed to providing severance benefits, outplacement assistance and more to help employees during this time.”
In total, approximately 900 positions will be impacted. Wherever possible, the company said their goal is to minimize the impact on employees by using current vacancies, retirements, normal attrition and other roles at International Paper.
The actions in Pensacola and Riegelwood will reduce IP’s pulp capacity by approximately 500,000 tons (300,000 tons fluff pulp and 200,000 tons southern bleached softwood). The company’s remaining pulp mill system will include eight mills with an annual production capability of 2.7MM tons.
The #4 machine in Pensacola is currently idled and will not resume production.
NorthEscambia.com file photo.
Comments
28 Responses to “International Paper To Permanently Cease Operation On One Local Production Machine”
There must be in this area, an enormous amount of knowledge and operation proficiency of the Paper Industry, all aspects and levels.
It would be interesting to examin the possibilities/obsticles regarding mill acqusition by the Paper Workers Union. A government loan, or China may loan the money?
I recall Champion’s divestment of the plasticote division and it’s employee acquisition, ala the facility on East Kingsfield (Jordan) Rd.
Please consider that I am discussing a subject of which I have limited knowledge.
Do this:
- stop making paper products ($1/lb)
- convert to meat packing (grass-fed steaks $15/lb)
- convert timberland to grass pastures
To all of those thinking IP still makes copying paper, they don’t and haven’t since early 2000s. They converted over to a Fluff Puff Machine(#4) that makes a sheet that’s ripped down to make the fill in baby diapers, women’s hygiene products and adult incontinence products.
The bleach plant being shut down years ago? No, it’s still up and running. How do you think they bleached the pulp for the #4 machine?
This hits hard for those that are in Orange Texas as their entire Mill will close. Yes, shutting down one machine at OUR IP is bad and people will be affected but at least they can be moved to other areas within. The ones that will leave the Cantonment location are people who are close to retirement and age and some who will jump ship before they see the entire picture. It’s bad but it doesn’t mean life is over.
REGARDING:
“Notice the price of a case of 81/2″x 11″ inch paper is over $40.00 now?”
$5.32 for a 500 sheet ream at Atmore Walmart.
$15.57 for a three ream case, 1500 sheets at Brewton Walmart.
Just over a penny per sheet. If you got a big enough case, I imagine the cost could be enormous, but still little more than a penny per sheet at worst.
There are other uses for paper, though and #5 Machine is always hungry for more pulpwood.
David with fond memories of summer jobs there
From the 1960s until now so many of the locals have been employed or worked supporting that Mill under different names. Many of my friends and relatives have worked there and had not for the Draft I would have probably been employed there as well. That company is so much a part of Cantonment and surrounding area despite the smell! Ican remember the day that the warehouse of paper burned. burnt paper all over the area for miles. All the pulp haulers, repair shops and other businesses will be burdened by this shut down.
@Not Again
9,400 jobs. And how many of those pay a living wage?
I am so sorry for the loss of jobs at IP,it is a sad story that people are losing their jobs at a crucial time like now close to the holidays. Pensacola is closing too many business,but not building enough businesses to keep the people working to make a living now a days,because everything is so expensive now,all goods have skyrocked so how can anyone live from pay check to pay check that’s sad. I worked for Albertson’s grocery store for almost 25yrs,I retired before they sold the chains to Publix’s,so I know how y’all feel. We have all these empty ass buildings here so why won’t can’t we have a bigger and better recycling plant here,cause we do need to keep recycling our products to keep our monies here in the state of Florida, we also needs to recycle our glass bottles as well,other states are cashing
Too all those that think the paper age is over …. baby diapers? Fem-Care products?
Airbus is hiring! Now is the time to become skilled in that area of development and move on. It’s only a matter of time until paper consumption is reduced to a minimum. Notice how all the packages are mostly plastic now? Notice how most forward looking schools are going to 100% paperless? Notice the price of a case of 81/2″x 11″ inch paper is over $40.00 now? This is not sustainable for teachers and staff. The answer is clearly computers, ipads etc with only one paper score sheet for testing.
The IP Pensacola mill has produced brown container board (the chief money maker) and white (bleached) fluff pulp for diapers, etc. for many years. Due to a variety of market factors, fluff pulp has been determined to no longer be sustainable in this mill process. The much coveted container board continues to be requested nationally and globally. The market for container board is strong and growing each year. These weighty decisions are about IP Global positioning itself to be in the best posture for future demand and market sustainability. It is not about a desire to close particular mills
@John
One of the job search engines posts 9,400 jobs in the Pensacola area. What type of jobs are you wanting Commissioner Barry and the Board of County Commissioners to “bring” to our community?
Training and education is the key to “bringing” jobs in. And accomplishing that is the responsibility of each person and the community, including elected officials.
In the good ole days at St. Regis there was an Alabama side and a Florida side.
I’m sure many will remember
It Is an amazing technological world we live in, but sadly technology costs some their livelihood. The digital age may streamline and quicken the way we do things, but as in everything that is called progress, someone suffers the consequences of that progress. I hope and pretty for those 900 people that they will be able to adjust.
Gentlmen,
Face the facts, that it is easer
to import the finished product than
it is to make at Cantonment or any where else.
If IP decided to import at a cheaper price, than
Cantonment is history.
It all boil down to cost of produce……….and
you can bet IP will find a way to do it…….
Its doesn’t count on quality it count son cost….
Ok they will not let the old machine sit there and rot as some have suggested, it will be dismantled and sold overseas I am sure where labor is much more affordable as are raw materials, the capacity of some of the old machines is significantly lower and more labor intensive. They did away with the bleach plant years ago as a result of environmental issues with the bleaching process, they had a sundsdefribreter system . The number 5 is the the one installed in 1980 and is a Beloit machine, it’s very big and most of the process is for boxes. The mill still uses a lime process to break down the cell wall of the wood for pulp production. All the newer systems in the past 20 yrs use a thermal mechanical process that uses pressure and steam to break down the cell wall for pulp. It is a much cleaner process without nearly as much negative waste product.
Question is what does Steven Barry think about this? The commission needs to find a way to bring jobs to this county.
“John Conner” … the machines that IP shut down (Pensacola & Riegelwood) make Fluff Pulp… the absorbency fibers in baby diapers, fem care products and other products that have high absorbent rates. No printing on any of those products.
The IP Pensacola mill strategically transitioned from white paper to container board (what boxes are made from) many years ago. It serves customers who ship everything these days. The Pensacola Mill makes some of the best and most highly coveted container board in the world. They should be fine
Difficult to believe that electronic media/storage has dampened paper demand, to such low levels?
Where is paper production shifting to, with these mill closings?
Sadly this is because of the digital age. Let’s be frank how many of you on here have a printer anymore? Or actually use it. I have one but haven’t needed to use it in 3 years. Everything can be filled via Adobe and sent online. So demand for paper is at an all time low. Unfortunately IP is a not a recycling mill so it can’t transition into other products like paper plates. It’s a mill built to make and we just don’t need that many anymore. I am surprised it lasted this long. When it goes that mill we be left to rot because demolitioning it is not cost productive. They will literally just let it rot there for eternity.
IP is not the only local major industry struggling right now…
Save for the future!!!
After working for 46 years @ this Mill and the majority was spent in the Bleach Dept. and have been retired for 5 years, I’m very saddened to hear this. I’m praying that with the ones that’s retiring it won’t be any layoffs. No one needs to hear this bad news especially if you’ve got a family.
Westrock in Panama City closed within 6 months. I wouldn’t bank on 5 years for this process. Second mill closing in this area. Not good for the local economy either way. Losing good jobs.
So sad to hear this. Important for jobs in our community. I hope job loss is a minimum.
The Pensacola Mill will probably close within 5 years. I don’t see how it is sustainable with one machine.
When I hired on at the mill there were 4 machines running. And 5 was being built. Then 5 came on line. They shut down 1 and two . And then 3. Now number 4. Now It is just one machine running now that #5 40 years at that mill. I was lucky to be able to retire. St Regis Champion Int. IP.
After working on #4 Machine in Pensacola for 25 years, it hurts deeply to see it going down. So many hard working men and women through the years working long hours on the machine and in the bleach plant. Wishing you all the best as you pursue the next opportunities in life.
Yes, it’s always a difficult decision when corporations are faced with decisions such as this, no one from the Corporate office in Memphis to the Management Leaders on the local level here take this lightly.