Nov 14 (Reuters) - International Paper ( IP ) on Friday said it will shut two U.S.

packaging plants by January as the company cuts costs and consolidates operations amid weak

demand.

The closures will affect facilities in Compton, California, and Louisville, Kentucky,

impacting 218 employees. International Paper ( IP ) said production will shift to nearby sites.

"The company will work to minimize the impact on employees by using attrition, retirements

and current vacancies at other International Paper locations," Tom Hamic, executive vice

president and president of North American Packaging Solutions, said.

The company, which acquired UK-based DS Smith earlier this year, has been reshaping its

portfolio. In August, it sold its global cellulose fibers unit to American Industrial Partners

for $1.5 billion to focus on sustainable packaging.

International Paper ( IP ), the world's largest packaging company by revenue, posted a quarterly

loss in October after taking a $1 billion impairment charge tied to the fibers unit sale.

It has also shuttered underperforming plants in the UK and Europe and raised prices as the

sector grapples with soft demand and higher costs, including tariffs imposed under U.S.

President Donald Trump.