The Riverdale mill currently supplies Sylvamo with about 260,000 short tons of cutsize uncoated freesheet annually from the No. 16 machine through a supply agreement.
Aug. 25, 2025 - Sylvamo has provided an update on a supply agreement it has with International Paper (IP) after IP announced plans to convert the No. 16 paper machine at its Riverdale mill in Selma, Alabama, to produce containerboard by the third quarter of 2026.
Currently, the machine produces uncoated freesheet (UFS).
The Riverdale mill currently supplies Sylvamo with about 260,000 short tons of cutsize uncoated freesheet annually from the No. 16 machine through a supply agreement.
In an Aug. 21 presentation, Sylvamo said, "The Riverdale supply agreement is not part of our long-term strategy and we have been planning for this conversion since our 2021 spinoff1. We will support our customers throughout this transition.
"We anticipate losing Riverdale volume when International Paper takes down No. 16 paper machine to begin the conversion to produce containerboard, and we have various options to mitigate impacts to our customers and are assessing which options are economically viable and work best under the evolving economic and tariff conditions.
"We plan to optimize our mix to minimize the earnings impact, which may include redirecting volume to the U.S. from our mills in Brazil and Europe. Based on our current assumptions for optimizing operations, mix and paper supply, the Adj. EBITDA impact in 2026 from the loss of Riverdale volume is estimated to be ~$30 million, at current margins," Sylvamo concluded.
Sylvamo Corporation (NYSE: SLVM) is the world's paper company with mills in Europe, Latin America and North America. Headquartered in Memphis, Tennessee, Sylvamo employs more than 6,500 people. Net sales for 2024 were $3.8 billion.
SOURCE: Sylvamo Corporation
1 Oct. 1, 2021 /PRNewswire/ -- International Paper Company on Oct. 1, 2021, completed its separation and spin-off of its global printing papers business, which is now operating as Sylvamo Corporation.