Grays Harbor Paper Shuts Mill in Hoquiam, Wash.

Grays Harbor Paper mill in Hoquiam, Washington.

June 2, 2011 - Grays Harbor Paper, LLC, last Thursday announced the permanent shutdown of the Hoquiam, Washington facility effective immediately.

Patrick Quigg, president of Grays Harbor Paper (GHP), explained the continued high price of raw materials, lower than expected sales of high-value products, and accompanying cash flow considerations are the major factors contributing to the decision to shutdown.

In addition, a recent major refinancing effort undertaken by GHP did not materialize.

“I want to acknowledge the continued support of the stakeholders in our community and the industry, especially our loyal employees, without whom we would not have made it this far,” Quigg said.

Grays Harbor Paper is a manufacturer of uncoated copy and printing papers, currently employing 240 people.

All employees will be affected by the shutdown with the exception of a small support crew to maintain the facilities and sell all remaining inventory, the company said.

As for the company’s physical assets and equipment, Quigg indicated all options would be considered, including the potential sale of the entire plant to a business that would be capable of restarting operations.

SOURCE: Grays Harbor Paper, LLC,