International Paper to convert Alabama mill machine, ending Sylvamo supply deal

International Paper (NYSE: IP) plans to convert the No. 16 paper machine at its Riverdale mill in Selma, Alabama, to produce containerboard by the third quarter of 2026. The conversion will end a supply agreement that provides Sylvamo (NYSE: SLVM) with approximately 260,000 short tons of cutsize uncoated freesheet annually from the machine.

Sylvamo Chairman and Chief Executive Officer Jean-Michel Ribiéras stated that the Riverdale supply agreement is not part of the company's long-term strategy. He noted that Sylvamo has been planning for this conversion since its 2021 spinoff from International Paper and has made strategic investments in its North American footprint.

Sylvamo will provide additional details about the transition in a presentation scheduled for Thursday, according to the company's announcement. The Memphis-based paper company operates mills in Europe, Latin America and North America, employing more than 6,500 people. Sylvamo reported net sales of $3.8 billion for 2024.

The information was disclosed in a company press release statement.

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