International Paper’s $360M NORPAC Deal: What It Means for Food Packaging Buyers
April 16, 2026: International Paper announced the acquisition of North Pacific Paper Company for $360 million.
When International Paper — the world’s largest pulp and paper company — spends $360 million to buy a mill, every business that buys paper-based packaging should pay attention. The acquisition of North Pacific Paper Company (NORPAC) from private equity firm One Rock Capital Partners, announced April 16, 2026, adds roughly 1 million tons per year of production capacity to IP’s portfolio. Combined with IP’s January 2026 announcement to split into two independent companies and its March 2026 plans for a new Mississippi facility, this deal signals a major restructuring of North American paper packaging supply that will affect pricing, availability, and lead times for years to come.
What NORPAC Brings
NORPAC operates a large-scale mill in Longview, Washington — one of the biggest on the US West Coast. The mill employs approximately 500 workers and runs three paper machines producing around 1 million tons per year. IP plans to convert NORPAC’s capacity toward “lightweight, high-performance recycled containerboard” — the material used to make corrugated boxes, pizza boxes, takeout carriers, and shipping containers.
For food packaging buyers on the West Coast, this is significant. Previously, much of the West Coast’s containerboard was shipped from mills in the Southeast or imported. A major local production facility under IP ownership means potentially shorter lead times and more competitive freight costs for West Coast buyers — but also less competition in the regional market.
The Bigger Picture: IP’s Transformation
This acquisition is one piece of a much larger puzzle. In 2025, International Paper completed its merger with DS Smith — a major European packaging company. In January 2026, IP announced plans to split into two independent publicly traded companies (details pending). In March 2026, IP unveiled a new sustainable packaging facility in Rankin County, Mississippi. And now NORPAC adds West Coast containerboard capacity.
What does all this restructuring mean for buyers? Three things: consolidation reduces the number of independent suppliers (less negotiating leverage for buyers), capacity optimization typically means tighter supply (supporting higher prices), and the focus on “high-performance recycled containerboard” signals that virgin-grade products may be phased out or repriced.
How This Affects Food Packaging Pricing
The NORPAC deal comes during a period of rising containerboard prices. Fastmarkets RISI reported price increases in both March and April 2026, with producers pushing toward a cumulative $70/ton increase. Sonoco separately announced an 8% increase on converted paperboard effective April 2026. Graphic Packaging launched a $60 million restructuring with layoffs — reducing capacity and supporting prices.
For food packaging buyers, the products most affected include corrugated pizza boxes, corrugated shipping boxes, paperboard food trays and carriers, kraft folding cartons, and paper sleeves and wraps. Expect 5–10% higher pricing through the second half of 2026 on these categories.
What Restaurant and Food Brand Buyers Should Do
Lock in contracts now. If you have significant paper-based packaging volume, negotiate fixed pricing or price-cap contracts before further increases take hold. Suppliers with pre-increase inventory may offer better terms for immediate commitments.
Consider lightweight alternatives. IP’s focus on “lightweight, high-performance” containerboard suggests the industry is moving toward thinner, stronger paper. If your corrugated boxes are 32 ECT, ask your supplier about 26 ECT alternatives — lighter board means lower cost per unit with comparable performance for many food packaging applications.
Evaluate material substitution. For some applications, switching from corrugated to solid bleached sulfate (SBS) board, from paperboard to PP, or from virgin to recycled-content paper can offset price increases. Run a cost comparison on your top 5 paper-based products.
Diversify suppliers. With IP controlling an increasingly large share of North American containerboard capacity, having backup suppliers — including direct relationships with smaller independent mills — reduces your exposure to any single producer’s pricing decisions.
Timeline of Key Events
| Date | Event | Impact |
|---|---|---|
| 2025 | IP completes DS Smith merger | Creates global packaging leader |
| Jan 29, 2026 | IP announces two-company split | Strategic restructuring signal |
| Mar 20, 2026 | New Mississippi facility announced | Southeast capacity expansion |
| Apr 16, 2026 | NORPAC acquisition ($360M) | West Coast capacity consolidation |
| Q3 2026 | NORPAC deal expected to close | Capacity conversion begins |
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