Scrap Monster
Vulcan
Vulcan
Paper Recycling January 11, 2019 09:30:56 AM

Georgia Pacific to Lay Off 700 Employees in Port Hudson

Paul Ploumis
ScrapMonster Author
The decision is likely to force lay off of nearly 650 people in Louisiana mill.
Georgia Pacific to Lay Off 700 Employees in Port Hudson

SEATTLE (Scrap Monster): The recent shift to electronic and digital communications has dented demand for office paper. Consequently, Georgia-Pacific announced its decision to exit communications papers business. In line with the decision, the company will permanently shut down its office paper machines and related assets in Port Hudson by mid-March this year. Meantime, the operations of the tissue and towel business will be unaffected. Furthermore, the company plans additional investment in this segment.

The decision is likely to force lay off of nearly 650 people in Louisiana mill. In addition, around 40 business and sales jobs are also likely to be impacted. According to company press release, it will retain around 300 workers, who will manage the production of toilet tissues and paper towels. Georgia-Pacific has already begun discussions with union leadership and affected employees on all aspects, including the possibilities of transfer of employees to company’s other locations.

Mike Adams, president – GP PRO and Communication Papers thanked all employees in the printing and writing papers business for their diligent support to the business. It is not viable to continue operating the segment, mainly due to declining market conditions and the required huge investment to sustain long-term operations, he added.

As per estimates provided by the American Forest and Paper Association (AF&PA), the demand for copy paper has declined sharply by nearly 57% over the past decade.

 

SM Newsletter
Subscribe to SM mailing list and get updates to your inbox