International Paper on November 21 announced the indefinite closure of its Louisiana mill in Bastrop, La. The decision to idle the 100 percent pulp mill operation is because of the continuing decline in pulp demand from its customers worldwide coupled with a weak economy across the globe. The closure will result in curtailment of the company's annual pulp production capacity by approximately 450,000 tons. The shutdown process will begin immediately. The mill is currently taking downtime due to a lack of pulp orders.
"We have carefully reviewed current options for the Louisiana mill and determined that because of an accelerating decline of pulp demand by our customers and the continued weakening of the global economic outlook for the foreseeable future, we needed to reduce our pulp production and close the mill indefinitely," said Wayne Brafford, IP's senior vice president, Printing & Communications Papers. "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."
"As always, the most difficult part of this closure is the effect on employees, their families and the community," said Brafford. "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."
The indefinite closure will affect approximately 550 employees at the Louisiana mill. Salaried and non-exempt employees will be offered severance packages and outplacement assistance. The company is committed to working 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.
International Paper is a global paper and packaging company with manufacturing operations in North America, Europe, Latin America, Russia, Asia and North Africa. Its businesses include uncoated papers and industrial and consumer packaging, complemented by xpedx, the company's North American distribution company. Headquartered in Memphis, Tenn., the company employs more than 65,000 people in more than 20 countries and serves customers worldwide. 2007 net sales were approximately $22 billion.
The Louisiana mill is part of International Paper's Printing & Communications Papers sector. The mill operates three pulp machines that produce market pulp in both roll and bale and fluff pulp for hygiene products. The facility employs approximately 550 people.