International Paper Blames Sluggish Economy, Cuts 50 Mill Jobs

November 14, 2008 9:48 a.m. EST

Franklin, VA (AHN) - International Paper will shut down one of five paper making machines at its Franklin mill on Nov. 23 and eliminate 50 of the paper mill's 1,200 jobs.

International Paper announced it will permanently shut down the No. 3 paper machine that produces uncoated freshsheet paper because of a continued decrease in demand. America's sluggish economy was blamed for the lack of demand.

The permanent shut down will decrease paper production at the mill by 150,000 tons.

Company officials say they will try to find the 50 affected people other jobs at the mill, other options include shifting people around so the job cuts were absorbed by retirements or attrition.

With the exception of breaks for maintenance, the machine has been running seven days a week. Its primary product was envelopes, and demand is down for those.

International Paper (NYSE: IP)) also announced that an overall decrease in demand means that it will shut down machines to eliminate 60,000 tons of production during the fourth quarter because of lack of orders.

International Paper is the world's largest pulp and paper producer.