Wedding & Event Venue Near Georgetown, SC.

Published: Oct. 31, 2024 at 2:45 PM PDT|

GEORGETOWN, S.C. (WCSC) - The International Paper mill in Georgetown is closing down by the end of the year and will put nearly 700 people out of work.

Leaders past and present are reminiscing on its time in the town and working to help secure the future of the employees.

Mayor Carol Jayroe says she found out about the paper mill closing only a little while after the employees. All day she says she has been talking to the business, the state Department of Employment and Workforce and friends she knows who work there.

“It’s all a fluid situation right now, so there’s not a lot that I know that you don’t know,” Jayroe says.

Jayroe says she has already talked to State Rep. Lee Hewitt about the SC Department of Employment and Workforce services that can be brought to the area. She emphasizes that this was a financial decision by International Paper and the company alone. International Paper says it will offer severance packages and outplacement services.

Aside from her work assessing the economic impact, Jayroe says she’s only ever known the city with the mill as a major part.

“I’ve lived here all my life. So International Paper, you know, my father worked there, and my grandfather worked there. So, yeah, it’s been an integral part of my life,” Jayroe says.

After 88 years open, locals know its closure will have severe impacts. The mill employs 526 hourly employees and 148 salaried employees who will soon be out of work. Former Mayor and Councilman Jack Scoville calls the news horrible.

“There’s people in the pulpwood industry, in the trucking industry, that depend on that mill so it’s going to have a direct impact on a lot more people than just the 700 or so who are going to lose their job. That’s absolutely horrible,” Scoville says.

The mill represents one of the last industries left in the city after the steel mill closed, and the port shut down. The city plans to build a new city hall on the old steel mill property. The paper mill facility is on county land. Mayor Jayroe says she is open to any future that may include annexing it into the city, but it’s too early to say what will become of it.

Scoville has some ideas, with Georgetown’s Front Street transforming into a tourist hub with increasing waterfront access. He adds the paper mill space as something that could draw another business or be transformed.

“So maybe the silver lining here, or what’s the story, when you get lemons make lemonade, is that between ports authority property and the steel mill property and the paper mill property, there may be some great opportunities,” Scoville says. “But in the near future, in the next two or three years, it’s going to have a real horrible economic impact across this town.”

While acknowledging the major loss of business and income to the area Scoville hopes this means something better is around the corner.

“Maybe developers need to start looking at Georgetown, because perhaps this 3, 4, 5, years from now, we’ll look back and say, well, new jobs have come in because of this area being available for development. So all we can do at this point is keep our fingers crossed. Hope for the best. Love our neighbors, help them when we can and move forward,” Scoville says.

Jayroe says while she has been close to tears all day, these things happen and it’s time for the people, city, county, and state to offer the resources they have prepared for industry closures.

“We are so fortunate to have several entities come together to help guide us through these times and our hearts go out to each and every one that will be affected by this closure. For almost 90 years, we have had a partner in International Paper, and it is a different day in the City of Georgetown,” Jayroe says.

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GEORGETOWN, S.C. (WBTW) — Tennessee-based International Paper said Thursday it plans to permanently close its mill in Georgetown.

The mill, which has 674 employees — 526 hourly and 148 salary — will shut down in stages but is expected to be shuttered by the end of 2024, the company said in a news release.

“This decision is especially difficult because of the impact on hard-working employees, their families and the surrounding communities,” the mill’s manager, Bernie Chascin, said in the release.

Georgetown Mayor Carol Joyce called the shutdown “unfortunate” in a statement released Thursday morning.

“International Paper has been a fixture in our community for decades, playing a large role in our local economy and supporting our community,” Joyce said. “The shutting down of the mill is unfortunate because of the positive impact it has sustained over the years in Georgetown. Our hearts go out to those being affected by this closure.”

A county spokesperson also released a statement Thursday morning, saying officials were “saddened to learn this morning that International Paper will close its mill in Georgetown this year.”

“IP has been a great corporate citizen here for nearly 90 years, and the loss is devastating,” the statement said. “In addition to the elimination of nearly 700 jobs, there are further community impacts including to contractors, small businesses and nonprofits.

“The Georgetown County Administrator and Economic Development staff is talking with IP today to get more information and will be meeting with other officials at the local, regional and state levels in various agencies, along with business partners to plan the way forward. There will be new employment opportunities coming in the near future and we need to coordinate efforts to best serve our community.”

Beth Stedman, president and CEO of the Georgetown County Chamber of Commerce, said the closing will have “significant implications” for the area’s economy because it will affect local suppliers and businesses that rely on the plant’s operations.

According to Stedman, the mill will operate through the middle of December. After that, a small number of workers will continue to work through 2025 as the plant is completely closed. The Box Plant will continue to run and operate.

Stedman’s also noted the company’s other contributions to the community, including partnerships with local schools, nonprofit groups and other local organizations.

“International Paper has long been a valued partner in our community, demonstrating a strong commitment to supporting local initiatives and enhancing the quality of life in Georgetown County,” Stedman said. “Their contributions extend beyond employment. Through partnerships with schools, nonprofits, and local organizations, International Paper has invested in education, youth initiatives, and community development. Their dedication to volunteerism and philanthropy showcases their role not just as a business, but as a key stakeholder invested in the well-being of our community.”

Stedman also said the community needs to unite and support those affected by the shutdown.

“We encourage community members to come together and support one another –especially our friends and neighbors who are most directly impacted by the mill’s closure,” Stedman said. “Reach out to your local SC Works Office, which has resources available for dislocated workers. Also, learn more about job training available through Horry Georgetown Technical College’s Advanced Manufacturing Center. Announcements of additional support opportunities will be coming in the days ahead.”

It’s also important to look to the future, Stedman said.

“As we face the challenges before us, we honor International Paper’s legacy and their positive impact on Georgetown County,” she said. “We look forward to exploring new ways to collaborate and new opportunities for economic growth in our area. Together, we can support one another and work towards continued renewal and innovation.”

Commuting from Pawleys Island to work for the South Carolina Environmental Law Project in Georgetown, Amy Armstrong said she was in shock when she first heard the news Thursday morning.

“One of the young women in my office was saying she’s got a friend who went to high school with her,” she said. “She’s from Georgetown, grew up in San Pedro, and this young man had this really great job at IP after graduating. Got married, has a young child and now is not sure how he’s going to be able to support his family.”

“It really hurts me that we’re going to have so many people struggling,” Armstrong continued. “So it’s a pretty tragic loss for our community. And what are we going to do to make up for that?”

“We’re talking about people’s lives and their livelihoods and people who’ve been committed,” Steadman said. “To be at the mill for so many years. So it certainly breaks our hearts for them.”

The Georgetownmill produces approximately 300,000 tons of fluff pulp that’s used in such things as diapers and incontinence products. The mill also produces uncoated freesheet papers that it sells to Sylvamo through a contract that both companies have agreed to terminate as of Dec. 31.

International Paper, based in Memphis, Tennessee, has about 39,000 employees worldwide.

This is a developing story. Count on News13 for updates.

* * *

Dennis Bright is the Digital Executive Producer at News13. He joined the team in May 2021. Dennis is a West Virginia native and a graduate of Marshall University in Huntington, West Virginia. Follow Dennis on, Facebook, X, formerly Twitter, and read more of his work here.

* * *

Gabby Jonas joined the News13 team as a multimedia journalist in April 2024. She is from Columbus, Ohio, and graduated from Kent State University in May 2023. Follow Gabby on X, formerly Twitter, Facebook or Instagram, and read more of her work here.

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International Paper on Thursday announced it will permanently close its pulp and paper mill in Georgetown, South Carolina, by the end of 2024. A total of 674 jobs (526 hourly and 148 salaried employees) will be impacted.

As of Thursday morning, there wasn’t a related WARN notice published in South Carolina’s public database, but it’s the single largest concentrated round of layoffs that the Memphis, Tennessee-based company has announced in recent weeks, of more than 1,500 total disclosed across multiple states. However, the Georgetown site is less focused on packaging.

The Georgetown mill produces 300,000 tons of fluff pulp for consumer products like diapers. Even with the closure, IP said it plans to retain customers and service them from other IP sites. The mill also has a supply agreement for uncoated freesheet papers with Sylvamo. That company, also based in Memphis, sells products such as copy and printer papers and those converted into envelopes, as well as specialty papers used in items like paper shopping bags or flour bags. IP and Sylvamo are ending that agreement Dec. 31.

The Georgetown closure comes as IP plans to “review strategic options” for its global cellulose fibers business. CEO Andy Silvernail said on a third-quarter earnings call Thursday that while the company will “evaluate every option ... the most likely option is a sale” and there have been multiple interested parties. IP retained Morgan Stanley as an advisor to review these options.

Silvernail said exiting the Georgetown mill “significantly lowers complexity and costs.” CFO Tim Nicholls said IP anticipates the Georgetown closure will decrease GCF business earnings by approximately $220 million in the fourth quarter due to depreciation expenses.

The GCF business reported $710 million in net sales during Q3, down from $725 million in Q3 of 2023, though profits were up.

Silvernail, who most recently served as an executive advisor in private equity, is now about six months into the job. He had alluded to forthcoming capacity reductions on the company’s second-quarter earnings call.

“As you look region by region, you have places that have way too much capacity, and you have places that do not have enough, and one of the mistakes that we have made over time is we have not made the tough choices,” said Silvernail. “Taking capacity out of places where we shouldn’t have it, and then investing aggressively in places that we should have it” is what IP will focus on as it tries to find “that right balance.”

The South Carolina announcement is the latest of several big closure and layoff announcements by International Paper in October:

GEORGETOWN, S.C. (WCBD) — Hundreds of workers in Georgetown will soon be out of a job after International Paper (IP) announced the permanent closure of its Georgetown paper mill.

It came as a shock to many when the company announced Thursday morning that it would close the facility as part of its plan to increase profits into the future.

“I learned early this morning that International Paper would be closing, and [the company] has been a fixture in our community for almost 90 years,” said Mayor Carol Jayroe.

The closure is expected to impact 526 hourly employees and 148 salaried employees, according to the company.

“It’s all fresh at this point and I have been in touch with Lee Hewitt, one of our representatives, and he has talked with the Department of Commerce and the Department of Workforce, so we hope to get some help from them with helping folks find another place to have a job that is close by,” Jayroe said.

According to an IP press release, the company wants to increase the profits from its Global Cellulose Fibers business, which generated $2.9 billion last year. Closing the Georgetown paper mill will help meet that goal, officials said.

“International Paper is committed to maximizing value for our shareholders,” Chairman and CEO Andy Silvernail said.

“It’s a financial decision, that’s all it is,” Jayroe said.

The company is offering severance packages, outplacement services, and access to mental health resources to impacted employees.

Nikki Ewing, the Vice President of Marketing for Georgetown Kraft Credit Union, said while the news is devastating, the city will get through it. The credit union was started by a group of IP employees in the 1950s.

“We are a strong community,” she said. “We help support each other and get through bad times, and this is, I think, definitely one of those times that you will see this community rise up and support each other. Not just the individual employees but everybody in this community is going to give back and give up to where we can help them.”

The closure is expected to happen in phases, but officials said the mill will be completely shut down by the end of December.

International Paper announced plans Thursday to close its Georgetown, South Carolina, plant and shift focus away from its global cellulose fibers business in favor of sustainable packaging solutions.

The closure of the Georgetown mill, which produces about 300,000 tons of fluff pulp, is expected to impact 526 hourly employees and 148 salaried employees.

The cellulose fibers business generated $2.9 billion in revenue in 2023 between eight mills and two converting facilities in three countries. Memphis-based International Paper is planning to look at alternatives away from that sector, according to a news release. (Cellulose fibers create absorbent pulp for application in personal care products and specialty pulp in textiles and construction materials.)

The Georgetown mill will be permanently closed by the end of 2024. The mill produces approximately 300,000 tons of fluff pulp, that byproduct will be retained for International Paper's global cellulose fiber industry use, according to a news release.

The Georgetown closure news comes a few weeks after International Paper announced plans to lay off 650 employees, including 400 in Memphis.

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International Paper's quarterly earnings

Also on Thursday, International Paper released its third-quarter earnings report. The earnings call provided context for the company's ongoing long-term strategy amid several recent changes.

"Our third-quarter earnings are above our outlook," International Paper CEO Andy Silvernail said. "Higher prices across the portfolio, including benefits from our packaging go-to-market strategy were supported by a moderately improving box demand environment. We also had higher operating costs and lower volumes due to seasonality and commercial actions to improve profitability."

In the third quarter, International Paper saw net earnings worth $150 million and adjusted operating earnings of $153 million. In 2023, those figures were $165 million and $224 million, respectively. The adjusted operating earnings share was slightly below third-quarter 2023 figures dropping from $0.64 per share to $0.44 per share.

Third-quarter revenue also dipped slightly at $4.69 billion compared to $4.62 billion in third quarter of 2023. Between the respective business operations, industrial packaging saw a notable third-quarter loss dropping from $291 million in the second quarter to $197 million in the third quarter, according to reports.

The losses, Silvernail said, were impacted by higher operating costs, outage costs and one less shipping day last quarter.

Silvernail provided some outlook into next year and the coming quarters, noting the company is targeting Greenfield and Brownfield sites for future investment. Those investments will be discussed in more depth during the fourth quarter earnings call, he said. The company is also shifting from a matrix structure to a larger customer-focused strategy, he said.

"It is too early to call a turn, but leakage has slowed," Silvernail said.

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International Paper's acquisition of DS Smith

Additionally, International Paper is in the midst of acquiring London-based DS Smith for $7.2 billion. The all-share deal was first announced in April.

During Thursday's earnings call, Silvernail said the DS Smith deal is expected to close in the first quarter of 2025.

Reuters contributed to this report.

Neil Strebig is a journalist with The Commercial Appeal. He can be reached at neil.strebig@commercialappeal.com, 901-426-0679 or via X:@neilStrebig.