Editor’s note: On Aug. 25, SEDA provided information regarding the status of the bonds mentioned in this article, as well as additional bonds issued earlier. Find the update here.
By Eric Curl
Aug. 22, 2025 – International Paper announced on Thursday it was closing its Savannah packaging facility and containerboard mill, in addition to shuttering its facility in Riceboro.
The closures, which will impact about 1,100 employees, are “essential to positioning International Paper for long-term success” and will enable the company to focus on the geographies, customers, and products” where they can “create the most value,” according to the press release and a statement attributed to Tom Hamic, Executive Vice President and President of International Paper’s North America Packaging Solutions business.
Read the International Paper Press release>
The press release states that the Savannah and Riceboro facilities will cease operations by the end of September, resulting in a net reduction of the company’s annual containerboard capacity by about one million tons.
The announcement comes after Chatham County Commissioners approval in December 2023 of a tax valuation agreement with the Savannah Economic Development Authority (SEDA) to allow for personal property tax abatements for investments in International Paper’s Savannah and Portwentworth plants. The exemptions are based upon $130 million of new capital investment and the creation or maintenance of 400 jobs. SEDA, upon County authorization, was to take title of the personal property during the seven-year abatement period to allow for the partial tax exemption.
Read the Chatham County Commission Dec. 15 2023 Meeting Minutes>
In February 2024, SEDA approved up to $130M in bonds for International Paper’s equipment investments in Chatham County, backed solely by the company’s lease payments. The bonds were tied to the tax abatement agreements requiring the job and maintenance investments at the facilities.
SEDA February 2024 meeting agenda>
Then in June 2024, SEDA approved the issuance of $21.84 million in bonds for International Paper to refinance costs of pollution control, sewage and solid waste disposal facilities at the Savannah mill.
June 24 2024 SEDA Board packet>
Savannah Agenda reached out to SEDA on Friday morning in regard to the plant closures and bond issuance, and this article will be updated if additional information is provided. (SEE SEDA’s Aug. 25 response here)
In 2023, the World Trade Center Savannah named International Paper Business of the Year and was lauded in part for playing a large role in the success of the Georgia Ports due to its “steady and consistent” exports.
City leaders were not given any given any prior notice of the closure, which will lay off almost 800 workers from the Savannah Mill, only learning of the shuttering on the morning of the announcement, according to Mayor Van Johnson. While speaking of the closure during a virtual press briefing on Thursday afternoon, Johnson said the city will convene a job fair that will bring together regional partners and employers to connect the skilled, tenured workers from the mill with new employment opportunities.
“You know what the moniker of Savannah Strong is, and that means when things go down, Savannah rises up,” he said. “And that is what we plan to do for our neighbors, for our friends, for our families and their families as well.”
About the Savannah mill
The Savannah Mill of International Paper was built in the 1930s by the Union Bag and Paper Company, which later became Union Camp to help create jobs and to ease the impact of the Great Depression. Union Bag was acquired by International Paper in 1999.
RELATED: Local business owner, community advocate and infrastructure enthusiast Clinton Edminster previously described the industries along the Savannah River, including International Paper. Check out his video below.
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TOP POSTS
When Savannah provides tax abatement and other resources to a company and then they decide to close, are there any requirements for payback? There should be. This is a game. When you parse all the company’s fancy language, you know this is all about cheaper, new public benefits, and more profits to the CEO and the board. This is totally outrageous. But yes, the environment will benefit.
Sorry folks are loosing their jobs. An advantage environmentally is less ground water removal. Ralph Nader’s book 54-years ago, The Water Lords, pointed out the environmental impact. Now, we live in an ever sinking basin with rising sea levels.