Georgia-Pacific has announced plans to permanently close its Memphis Cellulose mill and the Memphis Technology and Innovation Center, a decision that will affect roughly 152 employees in total.
The company stated that operations at both facilities are expected to cease by early December, marking the end of a long-standing presence in the city. Approximately 130 employees will be impacted at the cellulose mill and another 22 employees at the technology center.
Georgia-Pacific emphasized that its priority in the coming weeks will be to maintain safe operations while assisting employees during the transition. The company will offer job placement support, career fairs, and explore opportunities within other Georgia-Pacific or Koch companies, as well as external positions.
“Our focus is to continue to safely operate while supporting our employees during this transition,” the company said in a statement.
Georgia-Pacific also confirmed that it will work cooperatively with local union leadership to negotiate the effects of the closure, as outlined in existing agreements. The company will ensure that all affected employees receive their earned wages and agreed-upon benefits upon departure, and will cooperate with the state of Tennessee regarding unemployment benefits.
According to the company, the decision was made in the best interest of the GP Cellulose business, driven by challenging market conditions for the mill’s products. Georgia-Pacific noted that the decision was not a reflection on the performance or dedication of the Memphis team.
The company also indicated that it had considered selling the mill before opting for closure and plans to maintain the facilities in sellable condition for a period in case of future interest from potential buyers.
Georgia-Pacific said it will continue to work closely with customers to fulfill existing commitments during the wind-down process.
Georgia-Pacific is one of the world’s leading manufacturers of tissue, pulp, packaging, and building products. Headquartered in Atlanta, the company operates more than 150 facilities in North America, including six in Alabama. Its cellulose business supplies fluff and market pulps used in a wide range of consumer goods, from tissue and hygiene products to packaging materials.
