Georgia-Pacific To Exit Communication Papers Business
Friday, January 11th, 2019
Georgia-Pacific announced that it is exiting the communication papers business following an assessment of its long-term competitive position in a declining market. As a result, the company will permanently shut down the communication papers machines, related converting assets, as well as the woodyard, pulp mill and a significant portion of the energy complex at its Port Hudson, Louisiana, facility.
Approximately 650 jobs at the facility will ultimately be impacted by the communication papers and pulp asset closures. About 40 business and sales jobs also will be affected by this decision.
Georgia-Pacific will continue to operate and invest in the Port Hudson mill to support its growing consumer tissue and towel business. The Port Hudson facility, with its premium product tissue and towel machines and associated converting equipment, is a key contributor to the success of the Consumer Products Group's retail business. The company will retain approximately 300 employees to manage those operations.
Employees will continue to operate the Port Hudson communication papers and pulp mill assets, with final operations of those assets expected by mid-March. Georgia-Pacific has begun discussions with union leadership and the hourly and salaried workforce on how the process will work for employees affected by the job reductions, including the potential to transfer to other Georgia-Pacific locations.
"The employees in our printing and writing papers business have worked diligently to support the business, and in recent years we have invested significantly in our operations. We have ultimately decided that the required investment to sustain the operation long-term, coupled with the declining market, is not viable," said Mike Adams, president – GP PRO and Communication Papers. "We will be working closely with our printing and writing customers during this time of transition."