International Paper has announced a corporate separation plan that will result in two independent, publicly traded companies, both operating in sustainable packaging solutions. Following the transaction, International Paper will focus its activities on North America, including its historical IP assets and those of DS Smith in the region, while the new Packaging EMEA group will include DS Smith and International Paper operations across Europe, the Middle East, and Africa.
The decision follows a year of operational integration between International Paper and DS Smith, during which the group applied its 80/20 performance system to strengthen regional positioning, improve customer service, and optimize the product and service offering in both geographic areas. According to the company, the two businesses currently operate in different market contexts and are at different stages of their respective transformation journeys.
Under the new structure, International Paper North America will focus on the Packaging Solutions North America business, with a strategy centered on innovation, cost efficiency, and strengthening production networks. The group plans to continue industrial rationalization and asset optimization, accelerate investments in organic growth, productivity, and targeted acquisitions, while maintaining an investment-grade financial structure. The Packaging EMEA business, operating as an autonomous company, will be specifically designed for the European market and will include operations currently managed as DS Smith. Active in 30 countries, the new group will continue implementing the 80/20 roadmap, including industrial footprint optimization, structural cost reduction, and selective reinvestment in product and service innovation. International Paper expects to continue supporting the EMEA business until the separation is completed, aiming to improve margins and cash generation.
The transaction is expected to be executed via a spin-off of the Packaging EMEA business to International Paper shareholders, who will retain a significant stake in the new company.