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Updated: 3:36 PM Oct 23, 2009
Paper Company Closing Four Plants, Including One in VA
MEMPHIS, Tenn. & RICHMOND, Va. (AP) International Paper Company, the world's largest maker of cardboard box materials, says it is cutting 1,600 positions as it brings capacity into line with sharply diminished demand.
Posted: 8:00 PM Oct 22, 2009 |
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1 Comments 
International Paper Company, the world's largest maker of cardboard box materials, says it is cutting 1,600 positions as it brings capacity into line with sharply diminished demand. That's nearly three percent of the current payroll.
The company employees about 57,000 people.
The moves will cut IP's capacity by about 13 percent. Shares fell three cents to $23.74 in morning trading.
Calling the company's plan to idle its Franklin, Virginia plant "a deep blow" to the state, Gov. Timothy M. Kaine is promising help to the nearly 1,100 families affected by the closure.
Kaine said Thursday that he would direct the Virginia Employment Commission to dispatch an economic crisis strike force to Franklin within the coming days.
Besides the Franklin plant, the company plans to close plants in Albany, Oregon and Pineville, Louisiana. It also is permanently shutting down an idled mill in Valliant, Oklahoma.
©2009 The Associated Press. All rights reserved.
Latest Comments
Have friends working there. The whole town of Franklin works there or in a supporting business. This goes way beyond the 1100 employees at the Franklin plant. It starts with loggers & truck drivers already be given 30 days notice, to river barge companies that provided transportation to the bay for exporting. Also, "IP" provided 25% of Isle of Wrights county tax base. This will devastate the economy in that part of the state. Dems wanted change, they got it! Not sure the people in Franklin are "Feelin it" though.
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