MILLERSBURG - International Paper announced today that it will shut down the Albany Paper Mill, its containerboard facility in Millersburg, by mid-December.

IP spokeswoman Jessica Savage said this morning the mill will gradually shut down over the next two months. She said that 230 jobs will be lost because of the closure.

"It's effective today," she said. "We expect the closing to take until mid-December. It is permanent."

According to Savage, although IP expects that demand for containerboard and coated paperboard to increase as the economy improves, the demand is not expected to return to 2008 levels and the closures are necessary.

IP made the announcement to employees Tuesday morning. The mill shut down its No. 2 paper machine in October of last year, laying off 40 workers.

The company said it is working with union officials concerning severance benefits for hourly employees. Salaried employees will be offered severance packages and outplacement assistance.

IP is also closing mills in Franklin, Va., and Pineville, La., reducing its overall production capacity by 2.1 million tons a year.

"We recognize these are very difficult decisions affecting our employees, their families and the communities surrounding these mills," IP CEO John Faraci said in a released statement. "We have concluded that we have excess capacity in our North American paper and packaging businesses, and these decisions will better match our expected customer demand."

Savage said it was too early to tell if any workers could be relocated within the company.

"Any qualified employees can certainly apply for work within the International Paper system," Savage said.

The fate of the 900-acre mill site itself is unknown at this time.

"The company will explore possibilities of what to do with the site," Savage said. "I can say we won't sell it to anyone who would continue it as a containerboard mill."

International Paper is the top taxpayer in Linn County with a tax bill of $2,671,789 this year.

The mill produces kraft brown paper for corrugated cardboard boxes.

International Paper took over the Albany mill along with other containerboard, recycling and packaging businesses from Weyerhaeuser in early August 2008 as part of a $6 billion deal.

Its corporate headquarters is in Memphis, Tenn.

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