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International Paper (NYSE: IP) on Oct. 31, 2024, announced the decision to review strategic options for its global cellulose fibers (GCF) business.

Officials said the decision to explore alternatives for the GCF business is consistent with the company's strategy to focus on sustainable packaging solutions.

IP's GCF business creates high-quality absorbent pulp for a wide range of applications like feminine care, incontinence and other personal care products.

In addition, its specialty pulp serves as a sustainable raw material used in textiles, construction materials, paints, coatings and more.

The GCF business generated $2.9B in revenue in 2023 and has operations in three countries, with eight mills and two converting facilities.

Additionally, the company announced the permanent closure of its Georgetown, South Carolina, mill. The mill will shut down in stages with a full closure expected by the end of 2024.

The Georgetown mill produces approximately 300,000 tons of fluff pulp designed for a range of consumer applications from baby diapers to incontinence products.

GCF said it plans to retain 100 percent of the mill's fluff pulp capacity by transferring production to other mills and further reducing the company's exposure to commodity pulp grades.

The mill also produces uncoated freesheet papers that it sells to Sylvamo (NYSE: SLVM) pursuant to a strategic contract, which IP and Sylvamo have mutually agreed to terminate as of Dec. 31, 2024.

"This decision is especially difficult because of the impact on hard-working employees, their families and the surrounding communities," said Bernie Chascin, International Paper’s Georgetown mill manager.

In all, 526 hourly employees and 148 salaried employees will be impacted.

Officials said all employees will be offered severance benefits, outplacement services and access to mental health resources.