International Paper (NYSE: IP - News) today announced plans to close its paper mill and associated operations in Franklin, Va., and its containerboard mills in Pineville, La., and Albany, Ore. The company also announced it would permanently shut down the previously idled No. 3 machine at its Valliant, Okla., containerboard mill. The Valliant Mills other two machines will continue to operate. These permanent shutdowns will reduce the companys North American paper and board capacity by 2.1 million tons.
We recognize these are very difficult decisions affecting our employees, their families and the communities surrounding these mills, said Chairman and CEO John Faraci. We have concluded that we have excess capacity in our North American paper and packaging businesses, and these decisions will better match our supply with our expected customer demand.
Since the onset of the global recession, the decline in demand for International Papers uncoated freesheet in North America has accelerated, and consequently the company has decided to further reduce its uncoated freesheet capacity.
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