© (AP Photo/Duluth News Tribune, Steve Kuchera)
DULUTH, Minn. (AP) — Georgia-Pacific told its 140 workers at
its Duluth plant on Tuesday that it will permanently close the plant at
the end of the month.
The news came as a disappointment to Mayor
Don Ness, who said in a statement that the company previously had
assured him it would keep the plant open.
"We will start working
immediately to support new operations at the plant," Ness said.
"Meanwhile, our focus will be on the work force that will be displaced.
This is unfortunate and untimely news for our community."
The
plant manufactures a thin hardboard product called Superwood that's used
in the auto industry. Georgia-Pacific will shift the manufacturing of
Superwood to other facilities, the company said.
"The employees
are welcome to apply for any other jobs we have" at other facilities,
said Eric Abercrombie, Georgia-Pacific spokesman in Atlanta.
"We
realize this is a difficult decision and it is going to impact the
community," Abercrombie said. "The decision was made after a thorough
review to optimize the business. That was based on the long-term vision
for Georgia-Pacific wood products."
Under state law, employees
must be given 60 days of notice for a plant closure or layoff. The
company said it will pay employees for 60 days and provide benefits.
Manufacturing will shut down Aug. 30.
Georgia-Pacific will
reallocate any useable equipment at the Duluth plant and sell remaining
assets, according to the Duluth News Tribune.
The Atlanta-based company manufactures tissue, pulp, paper, packaging, building products and related chemicals.