Online applications and electronic billing have cut into demand for paper products. International Paper is laying off 1,100 workers at a Courtland, Ala., paper mill that it plans to close because of waning demand for the paper the facility makes.
International Paper has about 70,000 employees in more than 24 countries – including more than 700 at its Augusta coated paperboard mill. Once the Alabama mill closes, the business will have four paper mills remaining, in Eastover, S.C.; Riverdale, Ala.; Georgetown, S.C.; and Ticonderoga, N.Y.
The company expects the closing to result in $550 million in pretax asset write-off and accelerated depreciation charges. It expects about $125 million in pretax severance and other charges. The charges are expected to be recorded this year and in 2014.