International Paper (NYSE: IP) broke ground on May 20, 2026, on a $225 million sustainable corrugated packaging facility in Brandon, Rankin County, Mississippi, marking the company's largest domestic manufacturing investment in the Mid-South in recent years. The greenfield project comes as packaging suppliers and their automotive and industrial customers seek to localize supply chains, reduce logistics emissions, and meet tightening recycled-content requirements.
Background
International Paper announced plans in March 2026 to build a new 468,000-square-foot sustainable packaging facility in Rankin County, Mississippi. Following a comprehensive review of its manufacturing footprint, the company's Board of Directors approved the $225 million greenfield project in central Mississippi.
The investment follows a period of significant strategic restructuring. International Paper announced in January 2026 plans to split into two independent, publicly traded companies based on geography, following its acquisition of U.K.-based DS Smith in January 2025. The North American operations will retain the International Paper name, while packaging businesses across Europe, the Middle East, and Africa will form a new entity. The IP-DS Smith combination created one of the world's largest packaging companies, with the combined entity targeting at least $514 million in operational synergies while maintaining leadership in sustainable corrugated packaging.
Details
Company leaders, state and local officials, customers, project stakeholders, and community partners gathered on May 20 in Brandon, Mississippi, to mark the start of construction. The project includes a new 468,000-square-foot corrugated packaging plant on an 80-acre site in the East Metro Center.
The $225 million facility, located less than 10 miles from International Paper's existing Richland box plant, will strengthen manufacturing and service capabilities across the Mid-South region. The new plant is expected to incorporate advanced technologies focused on safety, automation, and productivity.
Keith Townsend, Group Vice President and General Manager of IP North America Packaging Solutions East, called the facility a pivotal step. "This groundbreaking represents an important step forward for International Paper, our customers, and the communities we serve across the Mid-South," Townsend said. "The Brandon facility will strengthen our manufacturing network with modern capabilities designed to improve safety, reliability, and operational performance, while positioning us to support long-term growth and deliver even greater value to our customers."
State and local officials said the project is expected to create approximately 150 manufacturing jobs while further positioning Rankin County as a growing industrial hub in the southeastern United States. Noel Daniels, Chairman of the Rankin First Economic Development Authority, said the investment validated years of site-readiness strategy. "This $225 million investment is a monumental win for our economy, secures 150 high-quality manufacturing jobs for our workforce, and positions Rankin County as the premier hub for industrial investments in Mississippi and the Southeast," Daniels said.
The facility will benefit from direct access to the CPKC rail network, supporting transportation efficiency and supply chain connectivity across North America. The Brandon plant will serve a broad range of industries with sustainable corrugated packaging designed to protect products, strengthen supply chains, and advance sustainability goals.
Employees at the existing Richland facility are expected to transition to the new Brandon plant upon completion, a move the company described as part of modernizing its footprint while maintaining workforce continuity.
The Brandon investment also comes as IP's DS Smith unit advances fiber-based solutions for automotive supply chains. DS Smith Tecnicarton recently introduced a fiber-based corrugated cardboard packaging solution for automotive chassis, designed to maintain performance standards while improving logistics efficiency. The packaging serves as a protective monomaterial alternative to traditional metallic reusable solutions used during production, assembly, and transportation of automotive chassis.
Outlook
Construction is expected to begin in June 2026, with operations anticipated in Q4 2027. The plant aims to reduce structural costs and support growth in key market segments by replacing older infrastructure with modern equipment. Supply chain professionals will be watching the facility's capacity ramp-up and whether supply agreements with automotive OEMs are announced ahead of the operational start date.
