MeadWestvaco Closing Machines

MeadWestvaco Corp. announced that it is permanently closing four coated paper machines and related equipment. The actions will take effect beginning April 1, and be completed by May 31, 2002.

Three coated paper machines and associated equipment will be permanently closed at MeadWestvaco's Chillicothe, Ohio, mill and one coated paper machine at the Luke, Md., mill will be permanently shut down.

The announcement follows the shutdown in October of 2001 of Westvaco's Tyrone, Pa., coated papers mill and sale of Mead's Menasha, Wis.-based Gilbert Paper Company and selected assets in November 2001.

MeadWestvaco also announced that it expects restructuring and other merger-related costs taken in 2002 to approximate $100 million, of which about $40 million is expected to be taken in the first quarter. Of the total estimated $100 million in charges relating to the former Westvaco operations, about 70 percent or $70 million are expected to be non-cash charges.