International Paper Company to close Alabama mill

WASHINGTON (Scrap Monster) :  With increasing number of customers switching to emails, online bill payment and electronic file storage, the market for copy paper and envelopes have drastically fallen during the past decade. This has forced International Paper Co- the leading packaging and paper manufacturer, to permanently close down its biggest paper mill in Courtland, Alabama mill.

According to company officials, almost 1,100 employees may be affected by the decision. The company would consult the labor unions regarding the benefits and assistance package for contractual workers. On the other hand, all salaried employees would be eligible for severance package, outplacement assistance and other benefits.

Closing down of the facility is expected to cut the company’s paper-making capacity by one-third. In tonnage, this would be around 950,000.Almost 80% of the above is uncoated paper used in copiers while the remaining 20% accounts for coated paper-mainly used for printing magazines and catalogs.

With annual payroll of $86 million, International Paper was the largest employer in rural Lawrence Country. The company accounted for almost 25% of the North American production capacity for uncoated paper.

The company plans to completely shut down the operations of the mill by Q1 2014.