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December 12, 2008

More bad news for Jay papermakers

A soft market for its specialty papers is being blamed for another round of layoffs at Wausau Paper's mill in Jay.

Managers announced Thursday that 90 workers will be laid off for up to three weeks, starting next week, according to the Sun Journal. The temporary layoff is in addition to the permanent layoff of 146 workers whose paper machine will be shut down at the end of the year.

Mill managers said the temporary layoff will end Jan. 5, unless the market rebounds sooner. The company's specialty paper mill divisions in Wisconsin and Minnesota will also be idled during the three-week downtime, according to the paper.

"The deepening recession in U.S. and world economies has substantially reduced demand for certain uncoated freesheet and technical special paper products," according to an internal company statement.

Wausau, which had record revenue of $1.2 billion in its 2007 fiscal year, announced the permanent shutdown of Jay's No. 10 paper machine in August, citing dramatically increased input costs and difficult market conditions.

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