International Paper has agreed to acquire North Pacific Paper Company (NORPAC) in a $360 million deal aimed at strengthening its packaging capacity and expanding supply across the US West Coast.

The deal, announced on April 16, 2026, will see International Paper take ownership of NORPAC’s Longview, Washington mill, which produces around one million tons of containerboard and other paper grades annually. The facility employs about 500 people and operates three large paper machines.

International Paper said the acquisition is designed to improve system flexibility, reduce operating costs, and better support rising customer demand for lightweight and recycled containerboard used in packaging.

NORPAC has been operating for roughly half a century and focuses on recycled packaging papers. The company’s output is widely used in corrugated packaging, a key material in retail supply chains and FMCG distribution.

Executives at International Paper described the deal as a strategic fit that strengthens its position in the growing West Coast market. The company said it expects the integration to support more stable service levels for customers and improve production efficiency across its network.

The transaction is still subject to regulatory approval.

Why it matters

Packaging remains one of the most critical but under pressure parts of the global grocery supply chain. Corrugated materials like containerboard directly affect how food, beverages, and household goods move from manufacturers to supermarket shelves.

For retailers and suppliers, tighter integration in packaging networks can improve resilience during demand spikes and reduce exposure to cost volatility in raw materials. It also supports the shift toward lighter and more recycled packaging formats, which many FMCG companies are now prioritising.

In the US supermarket system, where large volumes depend on efficient long-distance distribution, added capacity on the West Coast can influence logistics stability and packaging availability across multiple FMCG categories.

Editors’ Note: This article is based on official company press information released by International Paper on April 16, 2026.