TERRE HAUTE, Ind. (AP) – International Paper announced plans to close its 170-worker containerboard mill in Terre Haute, Ind. by year’s end.
The Memphis, Tenn.-based company said it had studied its options for closing or selling the mill for the past two years, but found that continued operations were unfeasible.
''The mill's relatively small size and high manufacturing costs hindered its long-term competitiveness, and ultimately have led to our decision to close the mill,'' Dennis Colley, vice president and general manager of the company's containerboard business, said in a statement Wednesday.
Salaried employees will receive severance pay and benefits, and the company would bargain closing details with the union representing production workers, he said.
The Terre Haute mill began operations in 1917. International Paper acquired it in 1998 as part of the company's purchase of Westin Wabash Co.