International Falls, MN (NNCNOW.com) --- The Boise Paper Mill in International Falls will be laying off 265 salaried and hourly positions following a closure of two paper machines and an off machine coater at the mill.
The International Falls Mill will lose 265 jobs, but there will be close to 300 jobs lost total as some corporate jobs will be eliminated as well.
The company announced the decision following the release of it's first quarter financial report. The paper company lost $1.2 million dollars in the first quarter of 2013. Last year for the same period, the company reported net income of $21.3 million dollars.
In the financial report, the company says that "to improve the cost of competitiveness of our paper business, where we operate against the background of secularly declining demand for our products, we have made the difficult decision to close two paper machines and an off-machine coater at our International Falls mill." The report goes on to say that "the closures will reduce the annual uncoated freesheet capacity by approximately 115,000 tons, or 9% and allow us to focus our efforts on key products and machines that drive our profitability, improve our cash flow and enhance the overall competitiveness of our International Falls mill and the Paper business."
The closures are expected to occur no later than the fourth quarter of this year. The exact timing will depend on customer orders and other economic variables.
In a letter given to employees of the paper mill, the company states that "it does not make sense to invest in machines where capital reinvestment needs exceed cash flow generation potential or to make products that we can't sell profitably."
posted to the web by Raeanna Marnati