Paper Production

Clearwater reduces Arkansas facility output

The pulp & paper industry is experiencing headwinds, including decreased demand and job cutbacks. Its most recent casualties occurred Thursday.

Clearwater Paper Corporation announced the restructuring of its Cypress Bend, Arkansas facility on April 9, resulting in the reduction of approximately 20% of salaried and hourly roles at the facility. The company plans to operate the facility at about half of its production capability. The company expects these actions to deliver $8 to $12 million of annualized cost savings, while not impacting shipment volumes.

The company had just launched a new line of lightweight paperboard products.

“We are faced with a supply driven downturn in our industry that is pressing margins and cash flows. We’ve made this difficult decision to improve our operating rates and reduce costs,” said Arsen Kitch, president and chief executive officer, in an April 9 press release. “Our Cypress Bend mill is well invested and cost competitive, and we intend to return the mill to full production in the future when SBS industry conditions improve or through an investment in swing CUK capabilities."

The company said it will provide severance packages, healthcare subsidies, and outplacement services to impacted employees, and work with the union through effects bargaining.