International Paper announced Wednesday it plans to close five sites in Germany as part of its integration with DS Smith, a British packaging company.
The manufacturing sites included are a conventional box plant, a display and offset site, and three sheet plants; another display site also will partially close.
“To improve efficiencies and to respond to the evolving needs of its customers in tough trading conditions, International Paper can confirm a proposal for closure of five sites in Germany, comprising of one conventional box plant, one display and offset site and three sheet plants as well as a partial closure of one display site”, IP states in a press release.
International Paper expects that, subject to mandatory employees' information and consultation procedures, these proposals would be implemented by the end of 2026 and that approximately 500 roles may be affected.
The proposals result from a strategic review by the Central European business as part of International Paper's transformational journey to become a stronger sustainable packaging solutions company. International Paper's goal is to optimise its existing resources to better serve its customers and to position the business optimally for growth. These proposals constitute an update to the intentions with respect to DS Smith set out in the Offer Documentation.
A consultation process with employee representatives is underway and, until such time as it has progressed, the Company cannot comment further on its scope or the potential impact on employees.
IP is engaging with labor representatives, the news release says, and until that activity progresses it will not comment further about the scope of closures or potential impact on employees.
