Subsequent Events

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Global Cellulose Fibers

The Company announced in the fourth quarter of 2024, the decision to review strategic options for our Global Cellulose Fibers (GCF) business. The decision to explore alternatives for the GCF business is consistent with the Company's strategy to focus on sustainable packaging solutions.

Additionally, the Company announced on October 31, 2024, the permanent closure of its Georgetown, South Carolina pulp mill. The mill will shut down in stages with a full closure expected by the end of 2024. The Company expects to recognize costs associated with the closure in the fourth quarter of 2024, including accelerated depreciation and pre-tax cash severance and other shutdown charges. The Company expects closure of this mill to reduce its workforce by approximately 675 employees. The Georgetown, South Carolina mill produces fluff pulp designed for a range of consumer applications. It also produces uncoated freesheet papers which it sells to Sylvamo under a strategic supply contract. The Company and Sylvamo mutually agreed to terminate this contract effective December 31, 2024.

Industrial Packaging

The Company completed the sale of the permanently closed Orange, Texas containerboard mill on October 31, 2024 for approximately $85 million in cash. The Company expects to recognize an approximate $60 million gain in the fourth quarter of 2024 on the sale of the mill.