Roofing company in Georgetown, SC

Updated: Nov. 7, 2024 at 4:44 PM PST

GEORGETOWN, S.C. (WCSC) - County and city leaders are working together for what’s next one week after the International Paper mill announced the closure of the Georgetown mill.

In a news conference Thursday afternoon, officials said the shutdown is a corporate decision and did not involve the county, and that the announcement left them in shock.

“This is a different kind of storm than we are used to, but we will weather it as we have so many others and look for the opportunities against the hardship,” Council Chairman Louis Morant said.

The plant will close before the end of the year and leave hundreds out of work.

City and county leaders said they are working to guide those impacted straight into another job that will keep them in Georgetown.

Morant said they are developing a support plan to ease this transition for workers. He also said agencies are already on site at the plant helping them with resume writing and interview preparation.

“This will lead into a job fair on Nov. 21 and 22 at Howard Center, bringing together employers who are ready to offer new positions to those impacted,” Morant said.

There is also a rapid response team made up of the South Carolina Department of Employment and Workforce, SC Works and Waccamaw Regional Council of Governments to conduct information meetings with these workers.

“How to file unemployment, how to get on the computer systems at the SC Works systems, services available for them such as career counseling which would include resume writing, interviewing and job searches,” Workforce Development Director of Waccamaw Regional Council of Governments Ayla Dyer said.

Georgetown County School District is assessing the impact this may have on any of their current staff members and students. The district will be at the upcoming job fairs looking to hire.

“We stand as a team in support, as well as a resource for those in need,” Superintendent Dr. Bethany Giles said.

The deadline for employees to sign up for the job fair is on Nov. 15. Over 40 employers will be there.

If you are an employer interested in participating, click here.

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GEORGETOWN — Georgetown County voters approved one new sales tax on Nov. 5, but they narrowly rejected another.

The capital projects sales tax, which will be used to pay for local infrastructure projects, passed with 51 percent of voters supporting it, according to unofficial results. Now a 1 percent local tax will be tacked on to the state’s 6 percent sales tax, making the sales tax in Georgetown County 7 percent.

Georgetown SC Business News

"This is a significant achievement as it will provide much-needed funding for critical health, safety and infrastructure improvements throughout Georgetown County," Georgetown County Chamber of Commerce President Beth Stedman said in a prepared statement. "We believe this outcome is a strong signal of our collective commitment to investing in the future of our area, ensuring that we have the infrastructure in place to support the needs of our residents and communities."

This sales tax is projected to generate $10 million annually for eight years.

There was also a local option sales tax on the ballot. That tax failed to pass by a razor-thin margin, with just over 50 percent of voters opposing it.

Patrick Hamrick, who lives in Georgetown, said he voted for the capital projects sales tax but not the local option one.

"I'm definitely more inclined to pay more in sales taxes if it's going to benefit the community I'm living in," he said.

He said he voted against the local option sales tax because he didn't understand what it would be used for.

County officials have said a local option sales tax would have reduced the property tax burden for Georgetown County residents.

Like the capital projects sales tax, it was expected to bring in about $10 million per year. Of that, 71 percent would have been used for property tax rollbacks, while the rest would have been divided between the county and cities based on population.

Officials estimated that the average household in Georgetown County would have paid roughly $58 in local option sales taxes per year. In return, they would have received roughly $477 in a tax credit.

The estimates were based on the average home price in the county, which is $200,000, and the average price of one vehicle.

"Voters ultimately decided against it," Stedman said. "We respect the decision of the community and acknowledge the concerns that may have led to this outcome."

What does the new tax mean for Georgetown?

The capital projects sales tax will not be charged on housing, groceries, fuel, prescription medication or vehicles, said Walt Ackerman, the county's director of administrative services.

Ackerman said the bulk of the tax will be paid by tourists, people passing through the county or those paying for goods produced by local industries. However, all of the benefits will go to Georgetown residents, he said.

A commission appointed by Georgetown County Council compiled a priority list and a contingency list of projects to be funded by the capital projects sales tax.

Priority projects will be completed first, and contingency list items will be funded with any money left over after the priority projects are finished.

The priority list includes a new emergency operations center, new fire stations, storm water projects, recreational facility projects and a bus terminal in Georgetown.

"The passage of the Capital Project Sales Tax provides Georgetown County with a clear path to begin the work of meeting community needs," Stedman said. "With this funding source in place, Georgetown County and partners will be able to tackle long-term projects that will benefit residents, businesses and visitors alike."

GEORGETOWN, S.C. (WCBD) – State and local leaders met to discuss the next steps for the International Paper Mill’s employees on Monday.

The International Paper Mill announced they are closing down the plant in Georgetown by the end of this year. This is expected to impact nearly 700 employees.

Georgetown County said their first priority is working on getting the mill’s workers new employment.

“We’re focusing on people right now, we’re working on re-employment opportunities,” Jackie Broach, public information officer of Georgetown County, said. “Of course there are effects beyond the people who have lost their jobs, and that’s significant – there were about 700 of them, but they also have families who work for other employers. Some of them are our employees, some of them are from the school district, some of them work for Tidelands. We’re wanting to keep these people in our community.”

In an effort to offset the hit the local economy is expected to feel next year, local businesses are looking to hire the mill’s workers. Currently, Tidelands Health has around 200 jobs open that require either a high school diploma or an associate’s degree.

“Some of these positions are easy to transition from their industrial background into healthcare,” Jeremy Stephens, executive vice president and chief human resources officer at Tidelands Health, said. “I know that might seem a little intimidating, but I spent 15 years in manufacturing, and I work in healthcare now, it can be done. So, we want to help them understand what types of positions we have, what the requirements are, and then we really want to partner with Horry-Georgetown Technical College to do some training.”

The college is offering free classes for people to get an associate’s degree, which is also in partnership with Tidelands Health. The company is open to working with those employees, who may be interested, to learn new skills.

However, healthcare is not the only option. Many of the businesses around Georgetown asked to be included in the upcoming job fair.

“We have lot of employers who have reached out with offers like that. They want to absorb some of these employees, people who have been loyal employees for many years. Again, we really just don’t want to lose these families, we want them to be able to stay here in Georgetown County and continue to be valuable members of our family.”

This week, SC Works will be at the mill working with employees to update their resumes and job search skills. On Nov. 21 and 22, the job fair is expected to be held at the Howard Center.

International Paper announced the decision to review strategic options for its 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.

IP's GCF business creates safe, high-quality absorbent pulp for a wide range of applications like feminine care, incontinence and other personal care products that promote health and wellness. In addition, its specialty pulp serves as a sustainable raw material used in textiles, construction materials, paints, coatings and more. The GCF business generated $2.9B in revenue in 2023 and has operations in three countries, with eight mills and two converting facilities.

"International Paper is committed to maximizing value for our shareholders, and to that end, we have launched a comprehensive and thorough review of strategic options for our global cellulose fibers business," said International Paper Chairman and CEO Andy Silvernail.

"GCF is focused on accelerating earnings by aligning resources with our most strategic fluff pulp customers, implementing an 80/20 mindset and creating a simplified and focused portfolio. Our team is well-positioned to win with attractive customers in the growing global fluff pulp market," said Clay Ellis, Senior Vice President, Global Cellulose Fibers, International Paper. "Throughout our review, we will maintain our strong customer relationships with the same high standards and close collaboration."

International Paper has retained Morgan Stanley & Co. LLC as financial advisor to help review strategic options for the GCF business. The review of strategic options is at an early stage, and there can be no assurance that this review will result in any kind of transaction or other outcome. The Company will provide updates on the progress or status of this matter if and when it deems further disclosure is required or appropriate.

P to Close Georgetown, S.C. Pulp and Paper Mill

Additionally, the Company announced the permanent closure of its Georgetown, South Carolina mill. The mill will shut down in stages with a full closure expected by the end of 2024.

The Georgetown mill produces approximately 300,000 tons of fluff pulp designed for a range of consumer applications from baby diapers to incontinence products. GCF plans to retain 100% of the mill's fluff pulp capacity by transferring production to other mills and further reducing the Company's exposure to commodity pulp grades.

The mill also produces uncoated freesheet papers that it sells to Sylvamo (NYSE: SLVM) pursuant to a strategic contract, which IP and Sylvamo have mutually agreed to terminate as of December 31, 2024.

"This decision is especially difficult because of the impact on hard-working employees, their families and the surrounding communities," said Bernie Chascin, Georgetown mill manager, International Paper.

In total, 526 hourly employees and 148 salaried employees will be impacted. All employees will be offered severance benefits, outplacement services and access to mental health resources.

International Paper reported third quarter earnings this week, and along with earnings that CEO Andy Silvernail says are above its outlook, the company also revealed plans to shut down a pulp and paper mill in South Carolina as well as provided an update on its proposed merger with London-based packaging company DS Smith.

IP’s net sales are up slightly year over year, with third quarter net sales coming in at $4.7 billion compared with $4.6 billion in the third quarter of 2023.

The company’s industrial packaging segment accounted for the majority of those sales at $3.9 billion compared with $3.8 billion in the same period last year, while IP’s global cellulose fibers business brought in $710 million and its corporate and intersegment sales brought in $50 million.

However, the industrial packaging segment brought in $197 million in operating profit, down from $325 million last year, and IP attributes that higher sales prices for boxes and containerboard being offset by seasonally lower sales volumes, high operating costs and higher planned outage costs.

Overall, IP reports $150 million in net earnings for the quarter, down from $165 million in the same period last year, and $153 million in adjusted operating earnings, down from $224 million last year.

RELATED: IP sees boost in Q2 earnings; CEO expects near-term challenges

“Our third quarter earnings are above our outlook,” Silvernail says. “Higher prices across the portfolio, including benefits from our packaging go-to-market strategy, were supported by a moderately improving box demand environment. We also had higher operating costs and lower volumes due to seasonality and commercial actions to improve profitability.”

As far as IP’s pending merger with DS Smith, the company says the regulatory process is still underway and now expects the deal to close early in the first quarter of 2025 rather than the fourth quarter of this year.

“We are very excited to complete the DS Smith acquisition,” Silvernail said during the company’s earnings call Oct. 31. “We are bringing together two great organizations and building winning positions in the attractive markets of North America and Europe. … Our teams are actively involved in planning for the integration.”

While the company prepares for its merger with DS Smith, it also is moving forward with streamlining its own operations, as it announced yet another closure, this time impacting more than 600 employees, and is exploring alternatives for its global cellulose fibers business.

IP’s pulp and paper mill in Georgetown, South Carolina, permanently will close by the end of this year, with the shutdown happening in stages. The move impacts 674 employees—526 hourly and 148 salaried.

The Georgetown mill produces about 300,000 tons of fluff pulp annually as well as uncoated freesheet paper it sells to Sylvamo pursuant to a strategic contract, which IP and Sylvamo mutually agreed to terminate as of Dec. 31. IP plans to retain 100 percent of the mill’s fluff pulp capacity by transferring production to other mills and further reducing its “exposure to commodity pulp grades.”

The closure is the latest in a string of closures announced by IP recently. According to WARN notices filed in the facilities’ respective states, IP will close a packaging facility in Kansas City, Missouri, by Dec. 17 and lay off 132 employees; a container plant in Statesville, North Carolina, by Dec. 16 and lay off 74 employees; a container plant in Cleveland, Tennessee, where 115 employees will be laid off; and a corrugated sheet plant in San Antonio where 89 employees will be affected. The company also plans to lay off 400 employees in Memphis, Tennessee, home of IP’s corporate headquarters.

"Going forward, we are laser-focused on delivering profitable growth as the low-cost, most reliable and innovative sustainable packaging solutions provider for our customers,” Silvernail says. We are deploying an 80/20 approach to strategically align resources to become excellent with our customers, while reducing complexity and cost across the company. This includes organizational restructuring and corporate cost reductions, as well as investments to strengthen our most competitive and strategic assets, paired with facility closures to structurally reduce operating costs.

“In addition, we are exploring strategic options for our global cellulose fibers business. We recognize the impact of these difficult decisions and are providing support for team members who are affected.”

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