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Boise Indefinitely Idles Newsprint Machine at DeRidder Mill

April 27, 2009 - Boise Inc. said it has decided to indefinitely idle its D-2 newsprint machine at its mill in DeRidder, Louisiana. The D-2 machine has been idled since February 9.

The company will continue to operate the D-3 newsprint machine and the D-1 linerboard machine at the DeRidder mill.

Boise began selling newsprint on March 1 of this year, transitioning away from a marketing agreement with AbitibiBowater.

"This was a difficult decision because we know it affects our employees, who have performed well and safely," said Alexander Toeldte, president and CEO of Boise Inc. "The drastic decline in newsprint demand is an external factor that none of us can control. Indefinitely idling the machine minimizes our costs while preserving our future options."

The D-2 machine, with an annual production capacity of 186,000 tons of newsprint, is being preserved, enabling the mill to restart it within a short period of time should the need arise.

Boise noted that it may also pursue options to convert the machine to packaging products at a later date.

The indefinite idling will result in a loss of ten salaried jobs at the DeRidder mill, and the 95 hourly employees affected will remain on layoff status.

Boise said closure agreement negotiations will be scheduled with the United Steelworkers Locals 13-0725 and 1226 to determine the impacts for union employees. The company has filed a notice of its intent to indefinitely idle the machine under the WARN Act and will pay union employees in lieu of notice.

Boise expects to employ about 450 people at the mill with D-2 idle.

SOURCE: Boise Inc.




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