Dive Brief:

• International Paper plans to spend $225 million to construct a new 468,000-square-foot greenfield box plant in Brandon, Mississippi. IP aims for the plant to produce 1.8 billion square feet annually after full ramp-up, said Amy Simpson, head of communications for North America, via email.
• Construction is slated to begin in June, and operations are expected to begin in the fourth quarter of 2027.
• The 80-acre site is less than 10 miles from IP’s existing Richland box plant, and when that site closes the employees will transfer to the new facility.

Dive Insight:

The new plant is designed to “strengthen International Paper's cost position, improve reliability and product quality, and enhance service capabilities across the Mid-South region,” according to a news release. The modern, more efficient equipment at this facility compared with the nearby box plant should reduce structural costs, improve efficiency and boost safety, according to IP. 

“Cost and space constraints at the existing Richland facility limited our ability to expand or modernize to meet future capacity, efficiency, and sustainability needs, making a new build the best long‑term solution,” Simpson said.

The plant will serve customers in the greater Mississippi area. IP decided to locate the new facility in this vicinity because “IP has a long‑standing presence in Mississippi, which we consider home for both our current and future employees,” Simpson said. “We value our strong partnerships with local and state leaders, and the region’s skilled workforce and infrastructure provide a solid foundation to support continued growth.” 

After the Brandon box plant opens in Q4 2027, production will transition there from the Richland facility. Operations are expected to conclude at Richland in late Q1 or early Q2 2028, Simpson said.

The moves follow a couple years of transition at International Paper to improve costs and performance, after then-new CEO Andy Silvernail launched the 80/20 optimization plan in 2024.

Silvernail has disclosed that the company’s optimization is progressing well and it’s exploring opportunities for investments such as facility upgrades. For instance, he discussed in October a plan to invest $250 million to convert the No. 16 machine at its Riverdale mill in Selma, Alabama, to produce containerboard instead of uncoated freesheet, with the reopening expected later this year.

In March 2025, IP executives said they intended to spend $1.9 billion per year in capital expenditures through 2027, much of which would go toward box manufacturing network improvements. Shortly before that, IP announced that it would build a new greenfield box plant in Waterloo, Iowa, which is scheduled to open later this year. “The goal is, over the next few years, to completely reconfigure our box plant network,” Silvernail said at the time.

Adding to that, leadership released a statement regarding the new plant in Mississippi.

“This investment supports our strategy to optimize our box plant system and focus capital where it drives the greatest return,” said Keith Townsend, group vice president and general manager of IP North America Packaging Solutions East, in a news release. “By modernizing our footprint in Mississippi, we are strengthening our service model and ability to provide customers with the highest quality sustainable packaging solutions.”

The transformation strategy also has involved a series of facility closures and more than 4,500 layoffs. Silvernail noted on the company’s earnings call in January that he expects an additional seven closures and 700 job cuts in Europe this year.