International Paper (NYSE: IP) announced it will close its Carrollton South packaging facility in Carrollton, Texas by the end of the third quarter of 2026.

The company said the decision is part of its ongoing efforts to align its manufacturing footprint with customer demand. Customers currently served by the facility will be redirected to other International Paper locations in the region.

"Decisions that affect our people and our communities are never made lightly. We're committed to supporting our Carrollton South team members throughout this transition," said Keith Townsend, Group Vice President, North America Packaging East, International Paper.

Employees affected by the closure will receive severance, continued benefits, and outplacement support, according to the company's statement.