Industryweek 5223 Internationalpaper Promo
Industryweek 5223 Internationalpaper Promo
Industryweek 5223 Internationalpaper Promo
Industryweek 5223 Internationalpaper Promo
Industryweek 5223 Internationalpaper Promo

International Paper to Close Plant, Cutting 1,100 Jobs

Sept. 12, 2013
The move will reduce IP's North American uncoated and coated paper for forms, envelopes, labels, copiers, printers and magazines by 950,000 tons.

NEW YORK CITY -- Amid falling paper demand as US consumers switch to online alternatives, International Paper (IW 1000/164) said Wednesday it would close an Alabama plant.

IP, a leading U.S. global paper and paper products company, said it had tried unsuccessfully to avoid closing its Courtland Mill, based in Courtland, Alabama.

The closure affects 1,100 employees.

The mill will be shut down in stages to be completed by the end of the first quarter of 2014, the company said.

The move will reduce IP's North American uncoated and coated paper for forms, envelopes, labels, copiers, printers and magazines by 950,000 tons.

"This decision to permanently close capacity is primarily being driven by demand decline for uncoated freesheet paper products in the United States," said John Faraci, IP chairman and chief executive.

The demand for uncoated freesheet in North America has been in decline since 1999, the company said, and has recently accelerated "as consumers continue to switch to electronic alternatives such as online publications and electronic billing and filing."

"We explored numerous business and re-purposing options for the Courtland Mill, but concluded that permanently closing the mill best positions the business for the future," said Tim Nicholls, senior vice president of Printing and Communications Papers.

IP employs about 70,000 people worldwide.

The Memphis, Tennessee-based company said the closure would result in write-off and depreciation charges of about $550 million and other charges of $125 million to be taken this year and in 2014.

Copyright Agence France-Presse, 2013

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!