Wausau Paper said this afternoon it would shutter its paper mill in Jay and lay off 96 employees.
The Mosinee, Wis.-based company said it would permanently idle its sole paper machine at the Jay mill by May 31 as part of a series of initiatives designed to improve financial performance, conserve cash and increase financial flexibility, according to a company press release. The mill’s remaining 96 employees will be laid off. As recently as September, the mill employed 235.
Wausau, which had revenue of $1.2 billion in fiscal 2008, shut down one of the two Jay paper machines in December, laying off 150 and citing dramatically increased input costs and difficult market conditions. The two paper machines together produced 68,000 tons of specialty paper a year.
Cost reductions, including the Jay mill closure, are expected to save the company $20 million a year, the press release said. The company also plans to suspend dividends, which will result in cash savings of more than $16 million annually.
“The dividend suspension and Jay mill closure are particularly difficult decisions to make, but are nonetheless necessary to preserve liquidity and match capacity with demand during a period of severe economic difficulty,” CEO Thomas J. Howatt said in the release.
