International Paper Announces Facility Consolidation Plans in Southern Texas
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International Paper announced the consolidation of its operations in the Rio Grande Valley (southernmost part of Texas, specifically on the border with Mexico) to better serve customers.
As part of its strategic growth initiative in North America, and commitment to the Rio Grande Valley, the company will make strategic investments in Texas to convert the current Edinburg sheet plant into a warehouse, invest in its current facility in McAllen to increase capabilities and shift its current Reynosa, Mexico, operations to a new, more modern and capable facility that is currently under construction in Reynosa.
The box plant and sheet plant operations in Edinburg will be closed, IP said.
"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," said Tom Hamic, Executive Vice President and President of Packaging Solutions North America, International Paper.
The company's goal is to minimize the impact to affected employees through natural attrition, retirements and open positions at other IP facilities, including open positions at the McAllen facility.
IP said that it will assist employees and customers through this transition.
