Albany, Oregon, USA, 01 October 2008 -- /PRNewswire/ -- Today, International Paper (NYSE: IP) announced plans to shut down its No. 2 paper machine at the Albany mill in Oregon as of 05 October, for a minimum of three months. This machine produces approximately 250,000 tons annually of containerboard, used to make corrugated packaging. Approximately 40 people's jobs will be affected by the shutdown.
"We don't underestimate the impact that this has on the employees who will be laid off as a result of this decision, and we're committed to working closely with the union and local agencies to provide outplacement benefits and other assistance," said Glenn Landau, vice president and general manager of IP's Containerboard and Recycling business. "This is a necessary near-term decision made in light of continuing high input costs, current economic conditions, and our commitment to match our production to our customers' needs."
Landau said the company will continue to monitor economic conditions as they evolve and will revisit the operating status of the machine early in 2009.
Mill leaders will meet with the union to discuss severance and medical and other benefits for affected employees.
Before the shutdown of Albany No. 2, International Paper's North American containerboard production is about 11 million tons per year.
International Paper (NYSE: IP) 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, Tennessee, the company employs more than 65,000 people in more than 20 countries and serves customers worldwide. 2007 net sales were approximately USD 22 billion. For more information about International Paper, its products, and stewardship efforts, visit internationalpaper.com.