Pulp and Paper Sector Contracts Further, Southeast Mills Hard Hit

The world of pulp and paper mills has historically been one of massive investments and decades-long business lives for many years. But this decade has seen a series of dramatic changes that are continuing during 2025.

There have also been some expansions and acquisitions, but overall capacity appears to be undergoing reductions now, particularly in the Southeast, the country’s largest timber region. (Lake States paper mill changes occurred earlier in the decade as COVID negatively impacted paper demand.)

Large recent changes announced have included the Georgia-Pacific containerboard mill in Cedar Springs, Georgia, impacting 525 workers. And another industry giant, International Paper, announced in August that it would stop making cardboard at mills in Savannah and Riceboro, Georgia, which employ 1,100 workers.

In a further paper-related move, International Paper announced the sale of its pulp division to private equity firm American Industrial Partners for $1.5 billion.

In good news from I.P., they announced a $250 million expansion of their Selma, Alabama, cardboard mill.

Forest products economic analysis firm Forisk catalogued 13 “paper sector announcements” from the third quarter (not including the two Georgia IP mill closings, which were announced later. Forisk’s list included a closing in Chillicothe, Ohio, and another in Niagara Falls, New York.

Meanwhile, a paper industry consortium voted in July to suspend a collaborative marketing effort. The U.S. The Department of Agriculture announced the result, saying that less than 27% of the domestic managers voted to continue the program.