COVID-19 continues to disrupt the economy at every level and in every sector. Few Americans have been untouched by the pandemic and no business is immune from its impact, including Georgia-Pacific.
Company leaders and experts at the local and corporate levels have carefully evaluated forecasted demand for the Toledo mill’s product (containerboard used in the manufacture of packaging boxes). This has included the effect of reduced demand on our ability to successfully compete in the current market.
We’ve determined that the total volume we produce across all three paper machines at Toledo significantly exceeds current and predicted short-term demand. This evaluation is based on current economic conditions which we will continually evaluate and adjust so we can be ready to meet customer needs in the future.
As a result, we have informed our employees that production at the Toledo facility will temporarily cease on the morning of Thursday, May 21. This means nearly all Toledo hourly employees (approximately 300) will be temporarily laid off on that date. Our current plan estimates resumption of containerboard production on Thursday, May 28.
It goes without saying that this was a difficult decision to make and we understand the concern and anxiety it may cause our employees, those who depend on them and the communities in which they live.
During the temporary closure of the mill, we will maintain our readiness to resume production. In the meantime, we continue to encourage our employees and fellow Oregonians to comply with public health measures to protect against COVID-19.
C. J. Drake
Public Affairs Manager