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Boise Reduces Uncoated Freesheet Production

October 19, 2012
BOISE, ID—Boise Inc. is permanently ceasing production on the company’s one remaining paper machine (H2) at its St. Helens, OR, paper mill. The decision will reduce the papermaker’s annual uncoated freesheet capacity by almost 60,000 tons and result in a loss of approximately 100 jobs, primarily at the mill.

“This is a difficult but necessary decision to focus our efforts and resources on the products and machines elsewhere in our system that drive the financial performance and cash flow of our paper operations,” said Alexander Toeldte, president and CEO of Boise. “Despite the dedication and hard work of our employees, we have concluded the machine cannot compete in the marketplace over the long-term.”

The company expects to stop production on the machine by Dec. 31. Eligible salaried employees will be offered severance packages and outplacement assistance. Negotiations will be scheduled with the Association of Western Pulp and Paper Workers Union (AWPPW) Local 1 to determine the effect for union employees.

With this announcement, the only operating paper machine at the St. Helens mill is owned by Cascades Tissue Group. Boise continues to explore alternatives for the inactive portions of the mill site.
 

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