Also part of the reduction plan will be the elimination of 100,000 tons of containerboard capacity by the company.
Last year, International Paper, the world's largest paper and forest-products company, relocated its headquarters operations from Purchase, N.Y., to downtown Stamford. In June of last year the firm cut 3,000 jobs from its global workforce.
"The evaluation of our production capacity versus our long-term customer needs is an on-going process, as evidenced by the closure of our Camden mill and the shutdowns of machines 2, 4 and 6 at Savannah last year," says Dennis Colley, vice-president, Industrial Packaging.
"As Oswego closes, IP's customer needs will be met by other larger facilities within our multi-mill system that have unused capacity," Colley says. "Shifting production to our more efficient mills will generate a better return for International Paper shareholders."
The Oswego containerboard mill will shut down by the end of this month, eliminating 102 jobs and 100,000 tons of linerboard, medium and kraft papers capacity, International Paper officials say. The supplies will be transferred to other company locations within the Industrial Packaging mill system, they add.
The company will cut an additional 250 jobs at other mills, most of which will be eliminated at its mill at Savannah, Ga., where 150 people will be affected.
International Paper officials say that all cuts should be implemented during 2002.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
