NEENAH, WI (WTAQ) - Layoffs are coming for a paper mill in Neenah.
Officials with Clearwater Paper says they will cut about 85 positions out of the 400 total employees as it shuts down a pair of tissue-manufacturing machines. The move is scheduled to take effect December 31, and will reduce production by about 32,000 tons.
The facility, located at 249 N. Lake Street, will continue to operate 3 other tissue machines.
“Although a difficult decision when considering the impacted employees at Neenah, we expect the plant’s restructuring to lower our overall costs and significantly strengthen the facility,” Glenn Taylor, vice president of manufacturing for Clearwater Paper’s consumer products division, said in a news release.
Clearwater Paper is also shutting down its Oklahoma City facility next March. That move will lead to 131 layoffs.
Company officials say they'll work with state workforce development agencies to help employees get training, education and career assistance services.
Clearwater is based in Spokane, Wash., and has facilities in 10 states.
In its most recent quarterly report on Oct. 20, Clearwater reported sales were down 1.6% compared to the same period in 2015.
The company expects the Neenah and Oklahoma City moves to save about $13 to $16 million total by the end of 2017, and $10 million a year after that.