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Thread: International Paper to close Alabama mill, lay off 1,100

  1. #1

    International Paper to close Alabama mill, lay off 1,100

    International Paper Co said it will close its Courtland, Alabama, paper mill by early next year, laying off 1,100 workers. The mill has an annual production capacity of 950,000 tons.
    "This decision to permanently close capacity is primarily being driven by demand decline for uncoated freesheet paper products in the United States," Chief Executive Officer John Faraci said in a statement.
    The decision to close the mill took months and was finalized at a meeting of IP's board of directors on Tuesday.
    Salaried workers will be eligible for severance, and IP said it would work with union officials to offer assistance programs to hourly employees.
    IP, based in Memphis, Tennessee, plans to take a $675 million charge related to the closure, and will record it later this year and into 2014.
    International Paper to close Alabama mill, lay off 1,100

    We can thank the importation of Chinese paper for that...
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  2. #2
    The Chinese are only part of the issue. The paper industry is collapsing because because the copier and printed news media markets are collapsing. More people are doing their reading online or on tablet computers and are storing information digitally, rather than in printed form.

    Al of the copier companies and almost all USA newspapers are in financial trouble right now. This is a big problem for the Japanese, because the copier industry has been a cash cow for Japan for the past 30 years. The only major newspaper in the USA that is growing is the Wall Street Journal, which has managed to transform itself into a mainstream publication that does not include all the crap we see in the liberal media. It is no longer primarily a business publication.

    As the paper industry downsizes, only the lowest cost producers will survive. Unionized companies like International Paper will not survive.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  3. #3
    That's correct for the press industry Top, but the printing business is not only newspapers. Look what you receive in your mail box every day


    Pretty dramatic
    Chart of the day: Newspaper ad revenue vs. newspaper jobs

    newspaper.jpg

    Following up on this recent CD post about the stunning free-fall in newspaper advertising revenue over the last decade to a 62-year low in 2012, the chart above displays: a) annual inflation-adjusted newspaper advertising revenue (red line), and b) the annual number of newspaper employees (blue line). As would be expected there is a very close historical relationship between newspaper advertising and newspaper payrolls (correlation = 0.912). Just like newspaper advertising revenue, employment levels at US newspapers went into a free-fall decline starting about 2000. A decade later in 2010, newspaper payrolls of 253,500 fell below the 1950 level of 269,000 for the first time, and by 2012 newspaper jobs collapsed even further – to 221,400 industry jobs in December. Compared to the peak employment level of 455,600 newspaper jobs in 1988 in the pre-Internet era, payroll levels at newspapers today are less than half of that – only 218,500 newspaper jobs in January – the lowest monthly employment level for the newspaper industry since the BLS started tracking those jobs in January 1947.
    As I commented before, the dramatic collapse in newspaper ad revenues and payrolls since 2000 has to be one of the most significant Schumpeterian gales of creative destruction in recent years. And it’s not over. One recent special report from IBISWorld on “Dying Industries” identified newspaper publishing as one of ten industries that may be on the verge of extinction in the United States.


    Chart of the day: Newspaper ad revenue vs. newspaper jobs | AEIdeas
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


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