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Georgia-Pacific to close communication papers business

Georgia-Pacific says it will lay off nearly 700 people and shut down pulp production at its Port Hudson, La., mill as it exits the communication papers business, following an assessment of its long-term competitive position in a declining market.

As a result, the company will permanently shut down the communication papers machines, related converting assets, as well as the woodyard, pulp mill and a significant portion of the energy complex the facility.

Approximately 650 jobs at the facility will ultimately be impacted by the communication papers and pulp asset closures. About 40 business and sales jobs also will be affected by this decision.

Georgia-Pacific says it will continue to operate and invest in the Port Hudson mill to support its growing consumer tissue and towel business. The company will retain approximately 300 employees to manage those operations.

“The employees in our printing and writing papers business have worked diligently to support the business, and in recent years we have invested significantly in our operations. We have ultimately decided that the required investment to sustain the operation long-term, coupled with the declining market, is not viable,” says Mike Adams, President – GP PRO and communication papers. “We will be working closely with our printing and writing customers during this time of transition.”

Employees will continue to operate the Port Hudson communication papers and pulp mill assets, with final operations of those assets expected by mid-March. The company says it has begun discussions with union leadership and the hourly and salaried workforce on how the process will work for employees affected by the job reductions, including the potential to transfer to other Georgia-Pacific locations.