International Paper is pushing ahead with a comprehensive restructuring in Germany that is deeply impacting several regions. The company, often referred to in the market as an IP group, is closing five sites, significantly reducing its industrial footprint. This move directly affects around 500 employees and simultaneously alters the dynamics of the packaging industry. International Paper’s current restructuring is shaping the entire market, as the planned site closures will lead to significant job losses and also change the balance of power in the European packaging industry. The recent merger with DS Smith also plays a key role, as it realigns the company’s strategic focus. (investing: 12.11.25)
International Paper initiates a major restructuring of its operations
Following an intensive review, the company’s management deemed the Central European market challenging and decided on a radical restructuring. A corrugated board plant, a display and offset printing facility, and three converting plants will be completely shut down. An additional display plant will operate on a significantly reduced scale. This closure will have a severe economic impact, as the affected regions will lose key industrial hubs. The simultaneous closure of individual units further illustrates the extent of the restructuring.
The paper giant cites “difficult market conditions” as the primary driver of its decision. At the same time, the European packaging industry is grappling with sharply rising costs and increasing global competitive pressure. Within this environment, job cuts are accelerating. The accompanying job reductions are hitting regions particularly hard, especially those with few alternative employment opportunities.
Merger with DS Smith and its consequences for the packaging industry
The timing of the merger with International Paper and DS Smith is attracting particular attention. The merger created a globally powerful supplier, but the new framework does not protect the German locations. Instead, the company is focusing more strongly on North America and selected EMEA markets. This significantly reduces the prospects for long-term stability for employees in Germany.
Formal discussions with employee representatives are ongoing. However, no concrete results have yet been achieved. The packaging sector is reacting sensitively to the current situation, as several regions are losing industrial capacity within a short period that had been in place for decades. While the merger offers the company global advantages, it exacerbates structural uncertainties in Germany.
Global Industry Giant – Local Markets Under Massive Pressure
International Paper is one of the world’s most influential players in the paper industry. The paper manufacturer employs more than 65,000 people in over 30 countries and has a far-reaching network. Its headquarters in Memphis steers global decisions, while the EMEA leadership in London provides key strategic impetus. Despite this strength, the withdrawal from Germany is hitting the affected regions hard, as they are losing economic stability and industrial diversity.
Furthermore, it demonstrates how strongly international strategies influence local structures. International Paper is pursuing a clear realignment that prioritizes efficiency and focus. The company is thus strengthening its global position, while significant gaps are emerging in Germany. The combination of plant closures, job cuts, and mergers illustrates how profoundly the market is changing as a result of international power shifts.