To many of the 1,100 workers at International Paper, news that the company was permanently shuttering its plants in Coastal Georgia came as a shock. Same for the normally savvy economic development leaders in Savannah.
In Hinesville, however, Liberty County officials say they had seen warning signs for months.
Cardboard and paper manufacturers have faced business headwinds for some time. Bloomberg News reported that IP saw a 5% drop in cardboard packaging in its second quarter compared to last year. The company acquired rival DS Smith earlier this year, a deal that signaled that it would be consolidating its operations in North America. On Thursday, IP announced that it was permanently shutting down the Riceboro plant and related timber and lumber operations, as well as two more plants in Savannah and concentrating work at its Selma, Ala., paper mill.
“Rumors had been that this was about to happen, that it was imminent, even though our hope was that it might not,” Liberty County Development Authority CEO Brynn Grant said…