On Tuesday, Georgia-Pacific announced the closing of some facilities in Arkansas, in both Crossett and Hope.
"Our Crossett employees have worked hard to safely and productively manage our operations there. In recent years we have invested significantly in our operations," said Monty Brown, G-P's senior vice president for its consumer products division, in a news release published in the Arkansas Democrat-Gazette.
He went on to say that investments needed for upgrades and long-term viability for the plant operations are not ecomically feasible, given the future view of the market. An estimated 550 workers will be losing their jobs in the fall, though 500 workers will continue operations in Crossett at the company's 630-acre compound after the closing of the bleached-board facility.
"The Hope plant will close in about 60 to 90 days," said Karen Cole, G-P spokesperson. She estimated "102 employees will be affected there."
Cole said that demand for particle board remains flat and new mills from other producers make it difficult for G-P's assets to compete.
"We're always evaluating our businesses and their performance. Ultimately, we had to make the tough decision to close this mill (as well as the one in Crossett) in addition to our other particleboard plants in Monroeville, Ala., and Thomson, Ga., in order to remain competitive in the markets we serve. We know this greatly affects our employees and the community," she said.
Cole said the Hope plant shutdown will be done in phases, with some staying on longer to complete tasks needed in the shutodown.
"We will ensure that all employees will be paid all earned wages and agreed-upon benefits," she said. "Further, individual conversations will take place with each employee to discuss employment opportunities and other G-P locations.
"If those other efforts are unsuccessful, we then begin talking about the terms of severance packages."