Georgia-Pacific (GP) has confirmed that tissue and towel manufacturing will continue as an important asset for its consumer business, as it announces plans to close the equipment and processes supporting the bleached board operations at its Crossett, Arkansas.
The closure of the facility will take place on October 2019.
The company said the decision was based on an assessment of the mill’s ability to compete effectively in the bleached board market.
GP will permanently shut down the bleached board machines, as well as the extrusion plant, woodyard, pulp mill and a significant portion of the energy complex at the Crossett mill.
In July, the company will also shut down one of the mill’s older tissue machines that it said “doesn’t support the long-term competitiveness of the tissue business”.
Approximately 530 jobs at the facility will ultimately be impacted by these closures.
GP will continue to operate and invest in the Crossett mill to support its consumer tissue and towel business.
The Crossett facility has premium product tissue and towel machines and associated converting equipment, and the company said it remains “a key contributor to the success of the Consumer Products Group’s retail business”.
The company will retain approximately 500 employees to manage those operations.
Until the assets are shut down in October, GP employees will continue to operate the mill in its current manufacturing configuration.
Based in Atlanta, GP and its subsidiaries are among the world’s leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, cellulose, specialty fibres, nonwoven fabrics, building products and related chemicals.
