International Paper to Close 3 North America Plants in Cost-Cutting Plan

Key Facts

1International Paper (IP) announced plans to close three plants in North America and end preprint operations at its Richwood, Kentucky facility by the end of Q3 2026.

2International Paper's estimated fair value is around $39.36, suggesting it is 1.5% undervalued based on future cost reductions and market share gains.

In a move aimed at improving operational efficiency in a competitive paper industry, International Paper (IP) announced plans, according to reports, to close three plants in North America (Illinois, California, New Jersey) and end preprint operations at its Richwood, Kentucky facility by the end of Q3 2026. The strategy focuses on cost reduction and improving net margins through capital investments, while shifting focus to higher-value opportunities.

The announcement comes as IP shares trade at $38.76 (close June 26, 2026), slightly below an estimated fair value of $39.36, suggesting the stock is about 1.5% undervalued based on expected future cost reductions and market share gains, according to analyst estimates. The company faces ongoing headwinds from oversupply in European markets, but the plant closures signal financial discipline that could support long-term profitability.

Investors are watching International Paper's ability to execute the planned closures on schedule, as any delays could diminish expected cost savings. The market will also look to upcoming quarterly reports for progress on margin improvement, amid continued uncertainty around global paper demand. In the near term, the stock may remain under pressure until the restructuring plan's results become clearer.