Georgia-Pacific to Permanently Close Cedar Springs Mill

News Summary

Georgia-Pacific has announced the permanent closure of its Cedar Springs containerboard mill, impacting 535 employees. The decision is based on the assessment that the mill cannot remain competitive long term. Employees will be laid off by August 2025, but will receive full pay and benefits until then. The company plans to assist affected workers by organizing job fairs and providing placement services. This closure follows recent market challenges and other facility shutdowns, indicating a broader reevaluation of the company’s operations.

Cedar Springs, Georgia – Georgia-Pacific announced on Wednesday that it will permanently close its containerboard mill located in Cedar Springs, affecting 535 employees. The closure is a result of the company’s assessment that the mill cannot competitively serve customers in the long term. All employees at the Cedar Springs facility will be laid off, with the bulk of position eliminations expected to occur by August 1, 2025.

Details of the Closure

The Cedar Springs mill, situated near Georgia’s southwest border with Alabama, will continue operations for a limited time to meet customer commitments while preparations for a safe shutdown are made. Although the timeline for the complete phase-out has not been finalized, it has been communicated that the worker adjustment and retraining notification has been submitted to the state of Georgia regarding the upcoming layoffs.

While most hourly employees are represented by unions such as United Steelworkers Locals 1703 and 1864, and the International Brotherhood of Electrical Workers Local 1980, the company is also engaging in effects bargaining with these labor unions to negotiate severance and other benefits. Salaried employees will receive severance packages upon their departure from the company.

Despite the closure, employees are entitled to full pay and benefits until the specified date of August 1, 2025, in line with the legal requirements for layoffs. Some employees may remain with Georgia-Pacific post-closure to facilitate the shutdown.

Support for Affected Employees

Georgia-Pacific is dedicated to assisting affected employees by helping them find new job opportunities, not only within Georgia-Pacific but also in other Koch-owned businesses and within the external job market. The company plans to organize job fairs and provide placement services to support those impacted by the closure.

Recent Trends and Context

The Cedar Springs mill’s closure comes on the heels of a temporary idling of its No. 2 paper machine earlier in April 2024, due to short-term market disruptions. This was the first production reduction since the No. 3 machine was idled in 2020, which reflects underlying challenges in the containerboard market. It is important to note that the decision to close the Cedar Springs mill is independent of these prior reductions in output.

In addition to the Cedar Springs closure, Georgia-Pacific also announced closures of other facilities this year, including a plywood plant in Emporia, Virginia, which affected 550 employees, and a corrugated plant in Milan, Michigan, impacting 113 jobs. These actions indicate a broader trend within the company as it reevaluates its capacity to meet market demands.

Conclusion

The closure of the Cedar Springs containerboard mill represents a significant impact on the local workforce of Cedar Springs, with 535 employees facing layoffs over the next two years. As Georgia-Pacific concludes that this facility cannot remain competitive, the company stresses its commitment to supporting its employees during this transition period.

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