CREVE COEUR, Mo. (AP) -- Smurfit-Stone Container Corp., maker of containerboard and corrugated packaging, said Monday it will shut down its Pontiac pulp mill in Quebec because of a weak market.
The company plans to close the mill by Oct. 31, cutting 218 jobs and resulting in a $39 million restructuring charge during the fourth quarter.
"The mill produces Northern Bleached Hardwood Kraft paper-grade pulp, which is not core to the company's transformation strategy," said President and Chief Operating Officer Steve Klinger in a statement. "The rapidly deteriorating conditions in the pulp market necessitate that the company take prompt action to avoid cash losses."
Earlier in October, Chief Executive Patrick Moore said the company has been able to raise prices and mill production, with shipments improving in the third quarter. He added that higher average selling prices and lower costs will improve financial performance in the fourth quarter.