The decision to idle the 100 percent pulp mill operation is because of the continuing decline in pulp demand from customers worldwide, coupled with a weak economy across the globe, according to the company. The closure will result in curtailment of the company's annual pulp production capacity by about 450,000 tons.
The shutdown process will begin immediately.
“We needed to reduce our pulp production and close the mill indefinitely,” said Wayne Brafford, senior vice president, Printing & Communications Papers for Memphis, Tenn.-based International Paper. “Our company is committed to matching our supply with the needs of our customers, which makes this difficult business decision necessary in a rapidly declining pulp marketplace. We will also work closely with our customers to help them meet their product needs.”
The closure will affect about 550 employees. Salaried and non-exempt employees will be offered severance packages and outplacement assistance. The company will work closely with union officials to determine benefits.
Negotiations concerning the effects of the closure with the union will begin as soon as possible. Employee assistance providers will be available to support employee and family needs.
“As always, the most difficult part of this closure is the effect on employees, their families and the community,” Brafford said. “The hard-working employees at the Louisiana mill have not only consistently performed and made excellent quality products for years, but have also been great examples of excellence in safety and employee engagement. We will do all we can to assist them during the closure process.”
For MORE NEWS BRIEFS, click here.