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Boise Paper to close Salem, OR converting mill

Jan. 11, 2007 - Boise Paper yesterday said that it will close its paper converting facility located in Salem, Oregon.

According to Boise, the converting operations will be phased out over the next nine months with permanent closure scheduled for the end of the third quarter 2007.

The company plans to sell the property.

Boise said it will allocate the Salem mill's converting production to its other mills in the U.S. The company's corrugated container plant will continue to operate in Salem.

"Demand and supply patterns for paper are changing and we have excess sheeting capacity," said Miles Hewitt, senior vice president and general manager, Boise Paper.

"In our ongoing quest to increase efficiencies and manage costs, we began an analysis of our paper converting operations in January 2006," Hewitt said. "The physical configuration and layout of the Salem converting facility, which had originally been a paper mill, was not cost competitive, and, given the property value of that location, was not the highest and best use of the property. So we studied the feasibility of relocating the facility," he said.

"However, given the changing demand for paper, we concluded that the best alternative is to close the Salem facility and consolidate our sheeting operations into other facilities," Hewitt added.

SOURCE: Boise Cascade, LLC




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