International Paper, a sustainable packaging solutions provider, has revealed plans to streamline its operations in the Rio Grande Valley region to improve customer service.
The company will transform its sheet plant in Edinburg, US, into a storage facility as part of its strategic expansion plan.
Alongside this warehouse conversion, International Paper intends to enhance its facility in McAllen, Texas, to boost operational capabilities.
The company will also shift its operations from the Reynosa facility in Mexico to a new site that is presently under construction in the same region.
As a result of this restructuring, International Paper will shut down its box and sheet plants in Edinburg.
The organisation seeks to lessen the impact on affected staff through natural attrition, retirements, and job openings at other locations, including McAllen.
International Paper said that it will assist employees and clients throughout this transition phase.
International Paper North America Packaging Solutions executive vice-president and president Tom Hamic 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.”
Headquartered in Memphis, US, International Paper employs more than 65,000 individuals worldwide. The company’s Europe, the Middle East, and Africa headquarters are located in London, UK.
This April, International Paper started discussions with Germany's PALM Group regarding the sale of five corrugated packaging facilities in Europe.
The sale is associated with regulatory obligations stemming from International Paper's acquisition of DS Smith.
Three out of the five facilities are in Normandy, France, comprising a box manufacturing plant in Saint-Amand, another in Mortagne, and a sheet production facility in Cabourg. The remaining two plants are found in Ovar, Portugal, and Bilbao, Spain.
