What is the Growth Strategy of International Paper?
International Paper’s strategy centres on transforming into a global leader in sustainable packaging, driven by innovation, circular economy principles and the acquisition of DS Smith.
The leading global packaging producer focuses on eco-friendly fiber-based solutions, efficient operations, forest stewardship and digital enhancements to reduce costs and improve customer value.
Restructuring efforts in 2024 and 2025 show how IP is shifting away from commodity pulp and toward high-value packaging.
Discussing the company’s targets, CEO Andrew K. Silvernail said during its May 2025 Investor Day: “We’re driving a winning mindset within the company. We are all about sustainable, differentiated packaging.
“You’re going to see a strategy today that delivers excellence.”
Driving success in North America
The firm formally announced a series of strategic changes to strengthen its North American operations in June 2025, including several key initiatives to focus the company’s sustainable packaging solutions in the region, including:
- Exiting the modelled fibre business and converting the Reno, Nevada facility to support packaging operation
- Closing a packaging facility in Marion, Ohio and a recycling facility in Wichita, Kansas
- Selling its containerboard mill and associated recycling plants in Xalapa and Apodaca, Mexico
These actions were part of a broader transformation that began in 2024, designed to create a more focused and agile provider of packaging solutions, particularly following its acquisition of DS Smith in 2025, which created a leader focused on the North American and EMEA regions.
Announced as completed in January 2025, the acquisition valued at around US$7.1bn in an all-stock transaction, with DS Smith shareholders owning about 33.7% of the new entity.
IP announced that this could create significant shareholder value and create a global leader in sustainable packaging solutions, focusing on the North American and European regions.
In a statement during the announcement, Andrew said: “The combination of International Paper and DS Smith will create the world’s leading sustainable packaging company.
“With a differentiated geographic footprint and an unparalleled suite of sustainable packaging products and services, we will accelerate growth, improve profitability and serve our customers even better.”
This is part of the company’s 80/20 focus in North America. The firm’s business philosophy is based on the Pareto Principle, focused on aligning resources to drive value by concentrating on the most profitable 20% of customers, products and activities that generate 80% of results, while streamlining operations and divesting less profitable areas to become a leaner firm.
2025 results in the expanded region
In IP’s third quarter earnings reported in November, the company recalled progress on what the CEO called a “transformational journey”, particularly highlighting the merger with the London-based company.
Entering into 2025, IP and Andrew predicted that US box shipments would be up 1%, but in November this was adjusted to be down as much as 1.5% for the full year due to trade uncertainty.
Andrew said during the earnings call: “While the markets are challenging, we are controlling our own destiny. We control our customer-centric approach, and that focus is working in North America.”
He added: “Our long-term ambitions remain. IP has the ability to deliver to the targets we laid out at Investor Day. In the medium term, however, the softer market this year and into 2026 has delayed our progress.
“We can deliver US$5bn of EBITDA [Earnings Before Interest, Taxes, Depreciation and Amortisation] in 2027 and continue to accelerate progress thereafter.”
Elevating the customer experience
Despite challenges in areas, IP remains focused on the customer experience and sales in hyperlocal areas.
The company posted an update to its strategy at the end of 2025, stating that one of its greatest strengths is its footprint, having one of the “most advantaged footprint in the industry”.
It adds: “But our business is hyperlocal. Most of our competition happens within 250 miles of a customer’s facility, which means we must win in each local market.”
To achieve this, the firm is focusing on high quality packaging, on-time delivery and rapid response times.
Heading into 2026, the company states: “This is more than a shift and strategy. It is a complete transformation on how we operate, invest and serve our customers.”
