International Paper plant in Lynchburg unaffected by mill closings

The International Paper plant in Lynchburg will not be affected by the closure of three of the company’s mills, including one in Virginia, a company official said Thursday.

International Paper announced that it would shutter its paper mill in Franklin, as well as containerboard mills in Oregon and Louisiana. About 1,600 employees would be affected, the company said.

Desmond Stills, spokesman for the Franklin mill, said that the Lynchburg facility assembles boxes and would not be affected by the closure of the mills.

The Lynchburg plant does supply boxes to the Franklin mill, but that is a small part of the plant’s business, said plant manager Tom Orr. The Lynchburg facility employs about 150 people, he said.

“We recognize these are very difficult decisions affecting our employees, their families and the communities surrounding these mills,” said Chairman and CEO John Faraci in a news release. “We have concluded that we have excess capacity in our North American paper and packaging businesses, and these deciions will better match our supply with our expected customer demand.”

A news release said the demand for the company’s products has decreased since the onset of the recession. The company expects to rebound once the economy recovers, but it does not expect to reach the same level of business it had in 2008 in the near future.

International Paper acquired its plant in Lynchburg in 2008 when it bought the company Weyerhaeuser.

International Paper’s stock closed Thursday at $24.38, up 61 cents.

This article was corrected to reflect that International Paper plant in Lynchburg employs about 150 people. It supplies boxes to the International Paper mill in Franklin that is closing, but that is a small part of business, plant manager Tom Orr said in a voicemail left Thursday night.