Thursday, May 24, 2007

International Paper to close Terre Haute mill

Inside INdiana Business reports that the International Paper mill in Terre Haute will close down by the end of this year, leaving 170 workers without jobs.

International Paper (NYSE: IP) today announced the company will close its Terre Haute, Ind., containerboard mill in the fourth quarter of this year.

"We have been thoroughly studying options for the Terre Haute mill over the last two years," said Dennis Colley, vice president and general manager of International Paper's containerboard business. "The mill's relatively small size and high manufacturing costs hindered its long-term competitiveness, and ultimately have led to our decision to close the mill."

Colley said salaried employees would receive severance pay and benefits, and the company would bargain the effects of the closure with the union. "While we realize a decision to close the mill is not the news employees want to hear, our goal is to provide outplacement assistance that will help address employees' needs as they transition to new employment," Colley said.

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