Rock-Tenn Closing Carton Plant

Rock-Tenn Co. announced its decision to close its Marshville, N.C., folding carton plant in the second quarter of next year. Rock-Tenn will transfer the majority of the Marshville facility's current production to its Marion and McDowell plants, which are also located in North Carolina.

Mike Kiepura, executive VP - Folding Carton division, stated, "As a result of the Gulf States acquisition, we are currently operating three folding carton plants that manufacture high value adding - packaging in a small geographic area. Consolidating operations in Marion and McDowell will enable the company to best service its diverse customer base and optimize its network of manufacturing facilities."

The Marshville closure is expected to generate about $2 million of annualized synergies that will contribute to the $20 million of synergies that Rock-Tenn expects to realize following its acquisition of Gulf States' paperboard and packaging businesses.

Weyerhaeuser Announces Indefinite Closure at Prince Albert Mill

As a result of poor market conditions, the Prince Albert pulp and paper mill in Saskatchewan faces indefinite closure.

"Today's announcement is an important step in strengthening Weyerhaeuser's overall portfolio to enhance shareholder value," said Steven Rogel, chairman, president and CEO. "As part of a strategic review of our businesses operating in structurally challenged segments of the industry, we have determined the Prince Albert mill is no longer a strategic fit for Weyerhaeuser. We will continue to seek additional opportunities to unlock the value of our portfolio."

The uncoated free-sheet paper and pulp markets face fundamental challenges, including excess capacity, declining demand, mounting inventories and weak prices. Weyerhaeuser made its determination regarding the Saskatchewan operation as a result of these market conditions.

The company intends to explore all options with respect to the future of the mill, including identification of potential purchasers.

Prince Albert operations will commence a phased, indefinite closure starting Jan. 3. Paper operations will cease production on or about Jan. 2. The pulp mill will continue operating until spring to minimize risk of damage caused by cold winter weather.

The Prince Albert facility has an annual capacity of 280,000 tons of uncoated paper and 130,000 tons of market pulp. It employs 690 hourly and salaried employees.

Georgia-Pacific Announces Initiatives to Gain Further Operating Efficiencies

Georgia-Pacific Corp. announced a number of initiatives in its North American and international consumer products businesses that will enhance its competitive position and drive further efficiencies. Together, the programs are targeted to simplify and improve the manufacture and delivery of products to customers across North America and Europe, while reducing operating costs significantly.

These initiatives follow previously implemented changes and include idling up to four tissue paper machines, with a combined capacity of 140,000 tons, and about 70 converting lines, as well as workforce reductions that will eliminate 850 positions in North America. In the international consumer products business, the plans include a reorganization in France, and further investments and rationalization in the United Kingdom and the Nordic region.

In North America, the new initiatives are part of the overall cost- reduction strategy for the business to reach its $1.2 billion annual operating profit goal. The initiatives include a restructuring of the company's commercial, or away-from-home, business by modifying production and distribution processes at its mills in Green Bay, Wis., Muskogee, Okla., and Savannah, Ga. The largest impact will be at the Green Bay Broadway mill, where plans include moving most of the mill's warehouse operations to a new product mix center in the Green Bay area and the closing of small, non-core operations.

The initiatives also include recent workforce reductions at tissue facilities in Plattsburgh, N.Y., Camas, Wash., and Wauna and Halsey, Ore., as well as at the company's Dixie manufacturing facility at Epic, Mich. In addition, the company plans to shut down tissue converting operations at Old Town, Maine.

These new initiatives follow a number of actions already implemented by the company to achieve the benefits from its Fort James acquisition. Since 2001, the business has shut down nine tissue paper machines, with 170,000 tons capacity, and idled 47 converting lines in the tissue and Dixie businesses. Much of the capacity of these machines and lines was moved to newer, faster assets. In addition, more than 2,250 positions already have been eliminated.

On the international side, changes already implemented include the closure of one operation in Greece, and the closure of two operations, as well as significant overhead reductions, in the United Kingdom. Among current changes, the company's management team in France is directing the shutdown of a paper machine at its Kunheim facility; and management teams in the Nordic region, as well as in Great Britain and Ireland, are directing further investments and rationalization across their businesses to improve operating efficiencies.