International Paper announced this morning that it will eliminate 200 positions at the Riegelwood plant by the end of the year.
“Decisions like these are extremely difficult, because of the impact on our employees, their families and the communities in which we operate,” IP Chairman and CEO Mark Sutton said in a press release. “We are grateful to our employees for their significant contributions to the company over the years. We are committed to providing severance benefits, outplacement assistance and more to help employees during this time.”
A total of 900 positions, including 200 at Riegelwood, are affected by the cuts. Mills at Riegelwood, Pensacola, Fla., and Orange, Texas are being partially or completely closed due to the economy and changes in product demand. The Texas facility will be permanently closed, while a dormant machine in Pensacola will not be restarted. The No. 20 machine in Riegelwood will cease production.
IP has between 600 and 650 positions at its operations in Riegelwood.
The company is doing all it can to lessen the effect of losing 200 positions at the county’s largest employer, said Kimberly Clewis, spokesperson for the Riegelwood plant. “The company’s goal is to minimize the impact on employees by using current vacancies, retirements, normal attrition and other roles at International Paper,” an IP press release said.
“Today we’re spending the day focusing on how this will affect our employees,” Clewis said. “The specifics haven’t been worked out yet. We’re trying to keep our employees informed and support them in this time.”
The Pensacola and Riegelwood plants focus on fluff and absorbent materials used for diapers, incontinency products and similar goods. The Texas plant produces containerboard, used for making boxes and packing materials.
Shutting down the equipment in Florida and here will reduce the company’s pulp capacity by around 500,000 tons. The company’s eight remaining pulp mills annually produce approximately 2.7 million metric tons.
County Economic Development director Gary Lanier said the news was not unexpected.
“Any layoff is bad news,” he said, “but IP will take care of its employees as best as they can. They have a reputation for being good to their workers.”
Lanier said that while there is “never a good time” for job losses, the damage is likely to be less than it might be with other companies in other communities.
“IP employees have a good work ethic,” he said. “They have to be good employees. That’s hard, hot work. It’s not a place you go to goof off. They won’t have any problem finding new employment if they have to leave IP.”
Lanier also pointed out that Provalus, an IT firm making its home in Whiteville, is looking for employees. At least one industry at the International Logistics Park on the Brunswick County line is expected to expand in the near future, and another firm will soon make its home there, creating even more jobs.
“These companies need a good, skilled workforce,” Lanier said. “IP produces hardworking employees. I’m comfortable that any the company can’t move to new positions will have no problem finding new jobs.”
Lanier said the county Economic Development office is constantly recruiting new employers, and will be available to help guide workers who need to find new careers.
“Again – employers need good skilled employees, and we have those type of workers in Columbus County. Our office stands by ready to help any way we possibly can.”
