International Paper (IP) Citi’s 2024 Basic Materials Conference summary

Strategic transformation and business focus

• Transitioning to a pure-play, integrated sustainable packaging business, moving away from low-value, cyclical commodity segments.

• Closure of the Georgetown Mill and exit from the Global Cellulose Fibers (GCF) business to sharpen focus on core packaging operations.

• Emphasis on becoming a global leader in sustainable packaging, with growing importance in both Europe and the U.S.

• All future actions and investments are aligned with this core strategy.

Cost reduction and operational efficiency

• Achieved $230 million in run-rate EBITDA improvement through cost-cutting, mill closures, and organizational restructuring.

• Dismantled a large matrix structure, reducing corporate headcount from 2,600 to 225, with most staff redeployed to business units.

• Targeting $1.2 billion in total cost reductions, with further gains expected from mill and box plant efficiencies.

Implementation of the 80/20 framework

• Adopted a fact-based 80/20 methodology to prioritize high-value activities and eliminate distractions.

• Pilots in box plants have shown 20–30% productivity improvements by specializing plant roles based on volume and complexity.

• Building organizational discipline and capability for long-term, sustainable performance improvements.