Mexican paper company Grupo Industrial Durango announced plans to reopen its mill in western Mexico, ending a four month labor dispute.
In a statement the company, one of the largest Mexican paper companies, said it agreed with workers at the Jalisco state plant to terminate and replace a collective bargaining contract in place for 55 years.
The plant of affiliate Compania Industrial Atenquique was closed in April due to high labor costs, representing 25 percent of production compared with 8-10 percent at other plants.
``The final liquidation of the collective work contract was made under requirement of the law, respecting workers' rights,'' the company said. ``Compania Industrial de Atenquique plans to reopen this important industrial center in the coming weeks, with a new collective work contract.''
The plant produces 132,000 metric tons of paper a year.
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