International Paper to Idle No. 2 PM at Albany, OR Mill
Oct. 2, 2008 - International Paper has announced plans to shut down its No. 2 paper machine at its Albany Mill in Oregon as of Oct. 5, for a minimum of three months. The machine produces approximately 250,000 tons annually of containerboard, used to make corrugated packaging.
Approximately 40 jobs will be impacted by the shutdown, IP said.
"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 & 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.
IP said mill leaders will meet with the union to discuss severance, medical and other benefits for affected employees.
Prior to the shutdown of Albany No. 2, International Paper's North American containerboard production is about 11 million tons per year.
SOURCE: International Paper