Georgia-Pacific Exiting Communication Papers

Georgia-Pacific 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 wood yard, pulp mill and a significant portion of the energy complex at its Port Hudson, Louisiana, facility. Approximately 650 jobs at the facility as well as 40 business and sales jobs will be affected by this decision.

The company will continue to operate and invest in the Port Hudson mill to support its growing consumer tissue and towel business. The facility 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.

Industry analyst Mark Wilde of BMO Capital Markets reported in his Packaging & Paper e-newsletter that the move is constructive for containerboard producers, as it delays the timing on any further white paper to containerboard conversions. International Paper recently delayed the timing on a conversion at its Riverdale, Alabama, white paper mill. Wilde said the GP announcement might prompt IP to delay even further.

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