International Paper Co. recently said it was shuttering two Texas facilities and laying off 117 workers as it restructures its presence along the U.S.-Mexico border.
The company is closing two production facilities in Edinburg, Texas, one that manufactures containers and another that makes paper sheets. The sheet plant will be converted into a warehouse.
While the company is closing two production plants in Edinburg, it is investing more funds at a nearby facility in McAllen, Texas, as well as a plant across the border in Reynosa, Mexico, officials said.
“There are 117 positions impacted; however the expansion at McAllen will create 40 new hourly positions to be filled,” International Paper Co. said in an email to FreightWaves. “The company will assist employees and customers through this transition.”
However, according to a Worker Adjustment and Retraining Notification (WARN) Act notice filed on May 9 in Texas, International Paper will lay off a total of 132 workers in Edinburg, as well as five employees in McAllen.
International Paper did not immediately respond to a request from FreightWaves for clarification on the number of employees being laid off in Texas.
Related: Mass layoffs from freight-related jobs continue across US, Germany
Memphis, Tennessee-based International Paper (NYSE: IP) is a global provider of paper and packaging solutions. It has more than 260 facilities in 30 countries and employs more than 65,000 workers..
The Reynosa operation will be moving to a more modern and capable facility that is currently under construction.
“The decision to cease operations at our two Edinburg facilities while investing in McAllen and Reynosa allows us to focus our efforts, provide excellent customer experiences and maintain a competitive cost structure that we believe positions us for profitable growth,” Tom Hamic, International Paper’s executive vice president and president of packaging solutions North America, said in a news release.
Since October, International Paper has laid off over 2,500 employees and closed facilities in Arizona, Illinois, Pennsylvania, Louisiana, South Carolina, North Carolina, Missouri, Tennessee and Texas.
During a first-quarter earnings call with analysts on April 30, International Paper CEO Andy Silvernail said demand for packaging and paper products declined across North America in recent months.
“Industry demand in North America was down 2% in the first quarter, and based on our order patterns, we expect that level of demand to continue into the second quarter,” Silvernail said.
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