Kimberly-Clark to Close Washington Mill

Kimberly-Clark Corp. (K-C), Atlanta, has announced plans to close its paper mill in Everett, Wash., after talks with the private equity firm Atlas Holding Inc., broke down. The two firms had been in negotiations for several weeks on selling the mill, which produces a variety of paper products, including bath tissue, paper towels and napkins.
 

The paper company, headquartered in Atlanta, had announced plans to sell the mill in January 2011. However, after negotiations between the two parties failed to resolve some issues Atlas opted to discontinue negotiations. According to The Seattle Times, K-C officials say environmental issues in part prevented the companies from reaching an agreement.
 

In a statement to the media, K-C says it will start scaling down its operations by the end of 2011 with the mill fully closed by the end of March 2012. A total of 700 employees will lose their jobs when the mill is shuttered.

 

Dave Faddis, vice president product supply for K-C, says, “We are disappointed that we couldn’t reach a sales agreement with Atlas Holdings. We have worked diligently for nearly a year to find a buyer for the Everett Mill but, unfortunately, we were unable to do so. Our focus now is on completing the timely and efficient closure of the mill and doing what we can to help our Everett employees with this difficult transition.”