GP mill closure positive for containerboard names, says Truist

Truist notes that Fastmarkets RISI reported that privately-held Georgia-Pacific, the fourth-largest North American containerboard producer, will permanently close its Cedar Springs, Georgia containerboard mill, effective August 1. This is the fourth containerboard closure announcement in 2025, following Smurfit Westrock’s (SW) Forney, Texas mill, International Paper’s (IP) Red River, Louisiana mill, and Greif’s (GEF) Fitchburg, Maine mill, totaling about 5.5% of North American capacity including today’s announcement, Truist tells investors. Overall, the firm views the closures as positive for North American containerboard supply/demand dynamics and believes it could be supportive of pricing, adding that closures are consistent with the firm’s thesis that the industry is acting rationally and will continue to adjust supply to meet demand.