International Paper, which supplies about 20% of all paper in the United States, said Wednesday it would close one of its two pulp machines in Riegelwood, about 20 miles north of Wilmington, and lay off 200 workers by the end of the year.
The Riegelwood facility employs a total of 650 workers. It produces about 2,000 tons of fluff pulp and market-grade softwood pulp each day. Fluff pulp is used in products such as diapers.
According to the N.C. Department of Commerce, there have been nearly 8,000 workers in the state who have lost their jobs this year due to layoffs, but none in Columbus County, where Riegelwood is located.
However, International Paper is by far the largest employer in the county, according to the Columbus County Economic Development Council.
The employees are represented by PACE, or Paper Allied-Industrial, Chemical and Energy Workers International Union Local 2-738, part of the United Steelworkers union, which had no comment on the announcement.
International Paper, which is based in Memphis, said the closing, along with the closing of its container board mill in Orange, Texas, and ending production at a pulp machine in Pensacola, Florida, would result in about 900 workers losing their jobs.
“Decisions like these are extremely difficult, because of the impact on our employees, their families and the communities in which we operate,” said CEO Mark Sutton in a statement. “We are grateful to our employees in Orange, Riegelwood and Pensacola for their significant contributions to the company over the years.”
The company said it would attempt to minimize the impact on employees by using current vacancies, retirements, normal attrition and moving workers to other roles at International Paper.
The Riegelwood mill, with its annual payroll of $75 million, is facing increasing global competition. It cut more than 100 positions in February 2022.
International Paper expects the Orange mill and the No. 20 machine in Riegelwood to cease production by the end of the year. The No. 4 machine in Pensacola is currently idle and will not resume production.