International Paper (IP) is to close three North American pulp and paper mills with the loss of 2,500 jobs.
The group announced the closures, which will cut its annual production capacity by 1.2m tonnes, as it issued its third quarter results.
"This was not an easy decision to make. We cannot continue to operate 'business as usual' if we are to win in today's tough, global business environment," said chairman and chief executive John Dillon.
The Paper, Allied-Industrial, Chemical and Energy Workers International Union (PACE), is looking at an employee buy-out plan at IP's Mobile and Camden mills.
IP also plans to close Lock Haven mill, and it will shut down one paper machine, along with a fibre line and pulp dryer, at its Courtland plant.
The shut downs mean the loss of 820,000 tonnes of uncoated papers (or 18% of production), 120,000 tonnes of North American market pulp, 230,000 of US containerboard, and 50,000 of unbleached kraft paper.
IP reported a 15% rise in Q3 earnings before special and extraordinary items to 179m ($260m), with net sales up 24% to 5.38bn.
Story by Andy Scott
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