Sylvamo and Riverdale mill supply agreement update
International Paper 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.
The mill currently supplies us with approximately 260,000 short tons of cutsize uncoated freesheet annually from the machine through a supply agreement.
The Riverdale supply agreement is not part of our long-term strategy, and we have been planning for this conversion since our 2021 spinoff.
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.