Georgia-Pacific Announces Closure of Cedar Springs Mill

News Summary

Georgia-Pacific has announced the permanent closure of its Cedar Springs Containerboard mill, which will result in the loss of approximately 535 jobs by August 1, 2025. The decision, attributed to long-term competitiveness concerns, follows operational reductions at the facility. The company will offer transitional support for affected employees, including access to job placement resources. The closure reflects broader trends in manufacturing and raises concerns about job stability in the community. This follows another recent closure at a plywood plant in Virginia impacting additional jobs.

Cedar Springs, Georgia – Georgia-Pacific has announced the permanent closure of its Cedar Springs Containerboard mill, which will impact approximately 535 jobs by August 1, 2025. The decision, made public on May 14, marks a significant reduction in the local workforce, with most positions being eliminated by the closure date. The company indicated that the mill will continue production temporarily to fulfill existing customer commitments until it prepares for a safe and orderly shutdown.

The mill’s closure is attributed to a belief that it cannot compete efficiently in the long term, as stated by Georgia-Pacific. However, the company clarified that this decision is unrelated to the quality of work performed by its employees. As part of its commitment to assisting affected workers, Georgia-Pacific plans to provide access to local job placement resources and support agencies, ensuring that employees have options for future employment.

Under the current timeline, some layoffs could occur before or after the set closure date, depending on ongoing business needs. Notifications regarding potential adjustments have already been filed with state authorities, highlighting the fluid nature of employment circumstances at the mill. Despite layoffs, certain employees are expected to remain on staff beyond the closure to assist with the shutdown process. This decision will likely affect hourly workers, many of whom are represented by unions, including United Steelworkers Locals 1703 and 1864 and the International Brotherhood of Electrical Workers Local 1980.

According to company policy, all salaried employees will be entitled to severance payments upon leaving the company. Additionally, negotiations regarding hourly benefits and severance are planned to take place with the labor unions representing the workforce. As mandated by law, all employees will continue to receive their pay and benefits until the August 2025 deadline.

In light of this closure, Georgia-Pacific is also focusing on helping workforce transition by facilitating opportunities within its various business operations or with its parent company, Koch Industries, as well as external employment avenues. The announcement follows a series of operational reductions at the Cedar Springs facility, which included the temporary cessation of production on its No. 2 paper machine earlier in May due to market disruptions. Furthermore, production on the No. 3 machine had already been idled in 2020 due to declining demand exacerbated by the COVID-19 pandemic. It is important to note that these prior decisions to idle machinery were made independently of the current closure announcement.

In addition to the Cedar Springs mill closure, Georgia-Pacific recently also announced the immediate closure of its plywood plant in Emporia, Virginia, which has impacted 550 jobs there. This series of closures highlights broader trends impacting manufacturing and employment in the industry, raising concerns about job stability and economic conditions in regions dependent on such facilities.

As Georgia-Pacific prepares for the Cedar Springs mill’s closure, the focus remains on a responsible transition for employees and maintaining support for the local community affected by the job losses. The closure marks a significant shift in the operational landscape of the company and emphasizes the challenges faced by manufacturing industries in remaining competitive in a rapidly changing global market.

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