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Georgia-Pacific to Streamline Its Communication Papers Business, Cuts 250 Jobs

Press release from the issuing company

ATLANTA, Aug. 27 - Georgia-Pacific Corp. today announced it will strategically reposition its communication papers business to focus on faster-growing paper segments by retiring four small, high-cost white paper machines and associated pulping capacity at its Camas, Wash., mill and investing in additional converting equipment at two facilities. The company will install new cut-size converting equipment in its mills at Port Hudson, La., and Camas to increase production of office papers. "This action will simplify the product mix across our system and create a more streamlined communication papers business that is focused on faster- growing segments of the paper industry and supports the strategic needs of our key customers,'' said George Wurtz, president -- paper and bleached board. "The investment in additional cut-size paper converting equipment at Camas and Port Hudson will strengthen our position as a leading supplier of printing and office papers to paper merchants, retailers, office products distributors, and converters.'' The machines being retired currently produce approximately 140,000 tons of commodity and specialty papers annually or about 11 percent of the company's current capacity. The associated magnefite pulping system produces 126,000 tons of pulp annually. Earlier this month, Georgia-Pacific completed the sale of its stand-alone white paper mills to Domtar Inc. for $1.65 billion. The company's communication papers business now will consist of seven machines at Crossett, Ark., Wauna, Ore., Camas and Port Hudson, with annual production capacity totaling nearly 1.3 million tons of office, and commercial printing and converting papers. In addition, Georgia-Pacific has a license to produce the Xerox brand of multi-purpose office papers sold in the United States and Canada, and its Unisource subsidiary remains the sole national distributor of Xerox branded papers. The Camas machine closures will affect approximately 250 employees. The machine retirements will not impact quarterly financial results. The Camas mill's towel and tissue operations will not be affected.

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