Paper Products Manufacturers NAICS 3222

Feb 6, 2026 - International Paper to Split into Two Companies

• International Paper plans to split into two publicly traded companies, creating separate North America and EMEA (Europe, Middle East, and Africa) packaging businesses with distinct strategies, capital priorities, and leadership teams. The company says the move will sharpen operational focus and allow each business to pursue region-specific investments, innovation, and cost improvements. The North America unit will concentrate on sustainable packaging, productivity gains, and targeted acquisitions, while the EMEA business will expand high-performance operations and tailor investments to regional market demands. The separation, expected to be completed in 12 to 15 months as a tax-free spin-off, depending on final terms, will leave International Paper with a meaningful ownership stake in the new EMEA company, which plans dual listings in London and New York.
• Packaging Corporation of America has told customers it will raise containerboard prices by $70 per ton on March 1, marking the first significant increase of 2026 and signaling a broader shift after a year of steep capacity cuts and weak demand, according to Packaging Dive. International Paper quickly followed with an identical hike, a pattern analysts say often prompts other large producers to move in tandem. For North American distributors, the increases come as operating rates climb back into the low 90s after roughly a 10% loss of production capacity in 2025, tightening supply and strengthening producers’ pricing power. Analysts note that rising energy costs, wage inflation, and higher equipment expenses are driving the push for higher prices, which could halt further erosion in box pricing. Additional increases may follow as structural cost pressures persist across the sector.

• US boxboard production declined 2% in the fourth quarter of 2025 compared to Q4 2024, according to the American Forest & Paper Association (AFPA). The boxboard operating rate was 85.6% in the fourth quarter of 2025, down 2.3 percentage points from Q4 2024. US containerboard production declined 4% in the fourth quarter of 2025 compared to Q4 2024, according to the AFPA. At 91%, the US containerboard operating rate was unchanged in Q4 2025 compared to a year earlier.
• Packaging executives expect 2026 to be a year of steadier, but more targeted, M&A activity, according to Packaging Dive. The shift could meaningfully influence makers of paper packaging products as buyers pursue growth in a slow volume environment. With organic demand muted by trends like lightweighting and lingering post-pandemic softness, converters may face increased competitive pressure as larger players refine portfolios, divest non-core units, and selectively acquire assets that strengthen scale or expand into higher value formats. Excess capacity in sectors such as boxboard and ongoing distress in substrates like glass could spur consolidation, potentially reshaping pricing power and customer relationships for paper-based packaging producers. Private equity is also poised to remain active as many holdings reach the end of their investment cycles, creating both acquisition opportunities and new rivals. Overall, a year of smaller, more strategic deals may reward companies with strong balance sheets and differentiated product capabilities.