International Paper reported a USD 1.097bn loss from continuing operations for the third quarter of 2026, after a USD 1.38bn non-cash goodwill impairment in its Packaging Solutions EMEA business. Sales were USD 6.197bn against USD 6.222bn a year earlier, and North American packaging delivered USD 427m of segment operating profit. The company removed EMEA guidance as the planned separation of that business progresses and now gives fourth-quarter and full-year targets for North American packaging only.
Why this mattersThe impairment resets the book value of International Paper's European box business before its separation, a reference point for valuations of European corrugated assets.
- USD 1.38bn non-cash goodwill impairment in Packaging Solutions EMEA in Q3 2026
- Continuing operations loss of USD 1.097bn, or USD 2.07 per diluted share
- Q3 sales USD 6.197bn, against USD 6.222bn a year earlier
- Adjusted EBITDA from continuing operations USD 843m, down from USD 859m a year earlier
- North American packaging segment operating profit USD 427m; Q4 adjusted EBITDA target USD 700–740m
- EMEA guidance removed as the planned separation of the business progresses
Croatia's Environmental Protection and Energy Efficiency Fund opened a public call on 27 October 2026 for collectors to handle up to 150,000 tonnes of paper and board packaging waste, with final recycling to take place abroad. The closure of paper production at DS Smith Belišće Croatia in November 2025 left the fund without a contracted domestic processor. The fund said waste firms holding Ministry authorisations had declared they could not sign contracts on its prescribed terms.
Why this mattersWith no domestic processor under contract, Croatia's recovered paper and board must now be exported, showing how one mill closure can strand a national collection system.
- Croatia's Environmental Protection and Energy Efficiency Fund opened a public call on 27 October 2026 for collection and processing of up to 150,000 tonnes of paper and board packaging waste
- Final recycling of the collected waste must take place abroad as no domestic processor is currently under contract
- DS Smith Belišće Croatia was the main contracted domestic processor until paper production in Belišće stopped in November 2025
- According to the fund, firms holding Ministry authorisations said they could not sign contracts under the prescribed terms
- CE-ZA-R, Metis and Nevkoš, of the C.I.O.S. group, had held authorisations and were in contract talks in 2025
- The fund had previously said it planned to contract additional domestic processors to reduce reliance on a single dominant operator
Silgan Holdings is to combine its Metal Containers segment and Food and Beverage Flat Cap Closures business with Trivium Packaging, currently owned by Ontario Teachers' Pension Plan and Ardagh Group, to form Silgan Metal Containers and Closures. The all-cash deal values Trivium at USD 3.4bn enterprise value, 7.1x LTM adjusted EBITDA (4.8x including expected synergies), and Silgan's contributed units at USD 3.8bn, 8.1x LTM adjusted EBITDA. Silgan will hold 60% and American Industrial Partners 40%, with the Trivium acquisition expected to close in mid-2027.
Why this mattersThe deal creates a larger metal containers and closures group across North America and Europe, while USD 2.3bn of cash proceeds lets Silgan retire debt.
- Trivium valued at about USD 3.4bn enterprise value, 7.1x LTM adjusted EBITDA, or 4.8x including USD 225m of expected synergies.
- Silgan's contributed Metal Containers segment and Food and Beverage Flat Cap Closures businesses valued at USD 3.8bn, 8.1x LTM adjusted EBITDA.
- Silgan receives about USD 2.3bn in cash proceeds to retire existing debt and keeps a 60% controlling stake in Silgan Metal Containers and Closures.
- American Industrial Partners holds the remaining 40% and contributes about USD 1.0bn of cash equity.
- Trivium, owned by Ontario Teachers' Pension Plan and Ardagh Group, has 57 locations, 7,200 employees and about USD 3bn of 2025 sales.
- The Trivium acquisition is expected to close in mid-2027.
- The combined venture is named Silgan MCC, with Europe accounting for 36% of its sales.
- Silgan MCC pro forma net sales are USD 9.8bn and EBITDA USD 1.5bn, with leverage of about 4.4x at closing.
- Fitch has affirmed Silgan Holdings' Long-Term Issuer Default Rating at 'BB+' with Stable Outlook, and secured debt at 'BBB-', following the transaction.
International Paper is in talks with potential bidders after unsolicited approaches for its EMEA packaging business, the former DS Smith operations, while it continues to prepare a spin-off of the unit. The spin-off, first announced on 29 January 2026, is planned as a London Stock Exchange listing with a Level II ADR programme on the New York Stock Exchange. The company says the sale process is at an early stage with no certainty of a deal, and it will hold a capital markets day on the separation on 3 November 2026.
Why this mattersA sale instead of a London listing would put the former DS Smith corrugated network under a new owner, with its strategy set by the buyer rather than public shareholders.
- International Paper said on 15 October 2026 it is in discussions with potential bidders after unsolicited approaches for its EMEA packaging business.
- The company said the sale process is at an early stage and there is no certainty a transaction will be agreed or completed.
- International Paper is pursuing the spin-off and a possible sale in parallel.
- The spin-off, first announced on 29 January 2026, is planned as a London Stock Exchange listing with a Level II ADR programme in New York; the standalone company would be named DS Smith plc.
- A DS Smith Capital Markets Day on the separation is scheduled for 3 November 2026.
- The statement was issued in response to recent share price movements and press speculation about a sale.
- International Paper agreed in April 2026 to buy North Pacific Paper Company (NORPAC) from One Rock Capital Partners for USD 360m.
- International Paper acquired DS Smith in 2025, forming the basis of the EMEA packaging business under review.
- Lone Star and Atlas Holdings are reportedly the two remaining serious bidders for International Paper's EMEA packaging assets built around DS Smith.
- Market sources say a final offer could come in below USD 6bn, against the roughly USD 7.2bn (GBP 5.8bn) International Paper paid for DS Smith in 2025.
- International Paper divested five European plants, three in France and one each in Portugal and Spain, to secure EU antitrust clearance for the DS Smith deal.
- Lone Star and Atlas Holdings are reported by the Financial Times and Reuters to be preparing separate bids for International Paper's EMEA packaging business.
- The EMEA packaging unit is valued at under USD 6bn, with no firm offer confirmed.
- International Paper cut the top end of its annual profit guidance in July 2026 after second-quarter sales missed expectations.
Sixteen retailers and brands, including Decathlon and several French cosmetics and fashion labels, have joined Reuse Fast Track, a European reusable shipping packaging programme led by Re-Zip, Raja and DS Smith. The closed-loop system uses reusable cardboard boxes returned via postal letterboxes, with 100,000 reusable parcels expected to be dispatched by spring 2027. The initiative is positioned partly as preparation for upcoming EU Packaging and Packaging Waste Regulation requirements due by 2030.
Why this mattersA reuse scheme spanning 16 brand owners, backed by a major fibre packaging maker, signals e-commerce packaging shifting ahead of PPWR reuse mandates.
- 16 retailers and brands joined Reuse Fast Track, including Decathlon.
- The scheme is led by Re-Zip, Raja and DS Smith.
- 100,000 reusable parcels are expected to be dispatched by spring 2027.
- Returns are centralised by Raja for quality control and repackaging before re-circulation.
- French online product sales reached EUR 76bn in 2025, according to Fevad.
- Some provisions of the EU Packaging and Packaging Waste Regulation come into force by 2030.
DS Smith, part of International Paper, has deployed a supply chain traceability platform across more than 250 manufacturing plants and facilities in over 30 countries, built with Accenture and software provider osapiens. The system is initially focused on materials covered by the EU Deforestation Regulation, tracing fibre through the EMEA supply chain from origin to production and distribution, and has engaged more than 1,000 suppliers.
Why this mattersShows how fibre packaging producers are building EUDR compliance infrastructure at group scale, a template other converters and box makers will need to match.
- Deployment covers more than 250 manufacturing plants and facilities in over 30 countries.
- System built with Accenture and software provider osapiens, using the osapiens HUB platform.
- More than 1,000 suppliers have been engaged through the programme.
- Since implementation, more than 25,000 supply chain workflows have been executed.
- Nearly 25,000 land plots have been monitored automatically for EUDR compliance.
- Almost 10,000 compliance cases have passed through automated case management.
DS Smith has confirmed the closure of its corrugated box plant in Launceston, Cornwall, with 165 job losses. Production at the site, which has operated there for nearly 60 years, will end in November 2026 after a consultation that began earlier in 2026 and followed worker protests in June. The decision extends a run of DS Smith UK site consultations and closures dating back to 2024.
Why this mattersThe closure removes further UK corrugated capacity and follows five DS Smith site closures decided in 2025, pointing to continued network rationalisation.
- 165 jobs will be lost at the Launceston, Cornwall plant
- Production at the site will end in November 2026
- The plant has operated in Launceston for nearly 60 years
- Consultation on the closure began earlier in 2026 after workers protested in June
- DS Smith made 70 roles redundant at its Louth, Lincolnshire site in 2024
- Consultations in 2025 led to closures at DS Smith sites in Plymouth, Derbyshire, Newcastle, Sheerness and Wellingborough
US District Judge Mary M. Rowland denied on 4 September 2026 the joint motion to dismiss and the separate motions by Packaging Corporation of America and Pratt Industries in the containerboard price-fixing class action brought in July 2025 by Artuso Pastry in the Northern District of Illinois. The 49-page decision found six of seven alleged lockstep or near-lockstep price increases sufficient to show parallel conduct, lifting the stay on discovery. Defendants must answer by 29 September 2026 and file a joint status report with discovery dates the following week.
Why this mattersThe case moves to discovery, exposing containerboard producers to damages claims and scrutiny of a market the plaintiff says five players now control with at least 85% share.
- Judge Mary M. Rowland denied the joint and the individual dismissal motions in a 49-page decision on 4 September 2026 in the Northern District of Illinois.
- Defendants must answer the complaint by 29 September 2026 and file a joint status report with discovery dates the following week.
- The case, Artuso Pastry Foods Corp. v. Packaging Corp. of America et al, was filed in July 2025 and alleges seven rounds of parallel price increases from November 2020 raising prices by about 30%.
- The court found six of the seven alleged coordinated increases plausible, including a USD 50-per-ton rise implemented on the same day after two and a half years without an industry increase.
- Ten defendants remain, including PCA, Pratt Industries, International Paper, Georgia-Pacific, Greif, Smurfit Kappa, WestRock and three Cascades entities.
- Graphic Packaging International and Smurfit Westrock were dismissed late last year, cutting defendants to 10 from 12; the court gave no reasons.
DS Smith, owned by International Paper, has proposed closing paper machine PM4 at its Kemsley mill in Kent while spending about USD 26.5m (GBP 20m) to modernise paper machine PM6. PM4 produces about 250,000 tonnes a year of containerboard between 125 and 210 gsm, and its closure would cut the number of roles at the site, with no redundancy figure confirmed and consultation with employees and union representatives still to come. The PM6 upgrade is intended to raise output and add new grades at the mill, which has capacity of about 830,000 tonnes a year and is Europe's second-largest.
Why this mattersThe move reallocates capacity within one of Europe's largest recovered-fibre mills, showing containerboard producers concentrating output on fewer, upgraded lines rather than adding capacity.
- DS Smith proposes closing paper machine PM4 at Kemsley mill, Kent, which produces about 250,000 tonnes a year at 125 to 210 gsm.
- DS Smith plans to spend about USD 26.5m (GBP 20m) to modernise paper machine PM6, to raise output and allow new grades.
- Kemsley, built in 1924, has annual capacity of about 830,000 tonnes and is Europe's second-largest paper mill.
- Closing PM4 would reduce the number of roles at the site; no redundancy figure has been confirmed and changes are subject to consultation.
- Two years earlier DS Smith announced USD 63.6m (GBP 48m) for a new fibre-preparation line at Kemsley.
- DS Smith is owned by International Paper.
A study cited by the Wall Street Journal estimates rural Alabama will lose almost USD 7bn in economic activity over the next decade because of Domtar's idling of its Coosa Pines fluff and market pulp mill in Childersburg, shut since May 2026 after a 24 March 2026 announcement citing weak markets and aged assets. Domtar's own fact sheet puts the mill's annual economic impact at USD 569m and its market pulp capacity at 270,000 tonnes. The closure adds to a run of North American softwood kraft cuts, including Domtar's own idling at Port Mellon, British Columbia, and Canfor's permanent shutdown of its Northwood mill in Prince George.
Why this mattersRepeated Southern and Canadian pulp mill closures are compressing timberland values and pulpwood pricing, tightening wood-fibre economics across the paper and packaging supply chain.
- Domtar's Coosa Pines mill in Childersburg, Alabama has been idled since May 2026 after a 24 March 2026 closure announcement citing difficult markets and aged assets.
- A study taken to Alabama's congressional delegation projects almost USD 7bn in lost regional economic activity over the next decade from the closure.
- Domtar's own fact sheet lists the mill's annual economic impact at USD 569m and its market pulp capacity at 270,000 metric tonnes.
- Reported job losses range from 250 to 285, against Domtar's own fact-sheet staffing figure of 275.
- Domtar is separately idling 400 jobs and 380,000 metric tonnes of northern bleached softwood kraft capacity at Port Mellon, British Columbia, by mid-October 2026.
- Canfor confirmed in July 2026 the permanent closure of its Northwood mill in Prince George, removing 300 jobs and 300,000 tonnes of kraft capacity.
The US House Energy and Commerce Committee voted 28 to 19 on 16 September 2026 to send H.R. 7502 to the House floor, a bill that would count advanced recycling as recycling and set a national standard for recycled-content labelling claims, overriding state rules. The American Forest & Paper Association opposes the bill. Conservative group Consumer Action for a Strong Economy has written to International Paper, Pratt Industries, Kimberly-Clark, Packaging Corporation of America, Smurfit Westrock and Procter & Gamble, all of which have executives on the AF&PA board, asking them to make the association drop its opposition or reconsider membership.
Why this mattersFederal rules on recycled-content claims would set one standard across the states and expose the split between paper and plastics recycling interests.
- The House Energy and Commerce Committee voted 28 to 19 on 16 September 2026 to advance H.R. 7502, sponsored by Republican New York Rep. Nick Langworthy.
- The bill would set a national standard for when a product can be labelled as made with recycled material and would override state rules on those claims.
- AF&PA opposes the bill, spokesperson Lindsay Murphy told Politico; the association says recycled-content claims should reflect the material actually in the product.
- Consumer Action for a Strong Economy sent September letters to International Paper, Pratt Industries, Kimberly-Clark, Packaging Corporation of America, Smurfit Westrock and Procter & Gamble.
- The letters ask each company to make AF&PA stop opposing advanced recycling legislation or reconsider its board membership.
- Texas Rep. Marc Veasey was the only Democrat to vote for the bill, and no Senate version has been introduced.
