550 lose jobs in Lousiana as International Paper shuts mill

Citing the weak global economy and reduced demand, International Paper Co. has closed its pulp mill in northeastern Louisiana, terminating 550 employees.

International Paper, based in Memphis, Tennessee, earlier this month began what was expected to be a seven-week shutdown at its Bastrop mill.

The company said that the plant would be shuttered for an undetermined time and salaried employees would be offered severance packages. The company said it would begin negotiations with union officials to determine benefits for line workers.

"Our company is committed to matching our supply with the needs of our customers, which makes this difficult business decision necessary in a rapidly declining pulp marketplace," said senior vice president Wayne Brafford.

Source: CNN Money