Georgia Pacific Closes Some Gypsum Plants

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Georgia-Pacific Closes Some Gypsum Plants ATLANTA (Reuters) - Paper and wood products giant Georgia-Pacific Corp. (NYSE:GP - news) said Wednesday it will close three plants and cut production at others -- affecting more than 500 workers -- to reduce gypsum wallboard production in North America by 45 percent.

It said the move was necessary because prices for gypsum wallboard, a key material in housing construction, had fallen so low that the business was becoming unprofitable.

The company said it will close wallboard plants in Savannah, Georgia; Long Beach, California, and Winnipeg, Manitoba. The company also will indefinitely idle commodity wallboard production lines in Acme, Texas; Sigurd, Utah, and Blue Rapids, Kansas. In addition, it will reduce operations at its remaining 13 wallboard production facilities to a maximum five-day work schedule for as long as current market conditions persist.

Further, Georgia-Pacific will offer for sale its recycled paperboard plant at Delair, New Jersey, in response to a decreased need for face paper used on wallboard.

The company, which employs some 85,000 people worldwide, said it expects to take a charge against earnings in the second quarter of approximately $75 million to cover all costs associated with the moves, including severance for laid-off workers.

Personal Note: That's pretty odd when the government releases reports that home construction is booming or barely off last years record pace

-- Guy Daley (guydaley1@netzero.net), June 13, 2001


Moderation questions? read the FAQ