IBJNews

International Paper to fold local plant, laying off 91

Back to TopCommentsE-mailPrintBookmark and Share

International Paper Co. plans to close its box plant on the east side of Indianapolis, permanently laying off all 91 employees by July 2, according to a notice to state officials.

The shutdown is the latest in a recent string of layoffs and closures by the global company in its Indiana operations.

Employees at the Indianapolis container plant, 2900 N. Franklin Road, manufacture corrugated and solid fiber boxes. The company said in a notice received Monday by the Indiana Department of Workforce Development that the job losses are expected to begin June 19. They will include more than 70 employees represented by unions.

The closure was necessary due to a recent merger that duplicated International Paper operations in the Indianapolis area, said Cynthia Godby, a spokesperson for the company.

"That created overcapacity in the market," Godby said. "We did not make this decision lightly. It was in the best interest of our shareholders."

International Paper, based in Memphis, Tenn., acquired industry rival Temple-Inland Inc. in February 2012. The purchase included a box manufacturing plant in the Indianapolis area, making the Franklin Road plant redundant, Godby said.

International Paper is a global manufacturing firm specializing in industrial and consumer packaging, as well as uncoated papers. It employs about 70,000 people worldwide, with locations in more than 20 countries.

The company’s operations in Indiana have been in flux for years. In April 2012, International Paper notified state officials that it was eliminating one shift and 57 employees at its Crawfordsville box plant. And, in 2011, International Paper at least temporarily layed off 78 employees at its Indianapolis packaging plant at 620 S. Belmont Ave. Those operations were spun off in the creation of a new packaging firm, AGI-Shorewood.

In January 2009, the company told state officials that it would close its plant in Hartford City by spring of that year, eliminating 99 jobs.

International Paper owns the Xpedx chain of print shops but has been shedding locations over the past three years. Those included Arvey Paper & Office Products at 1021 Pennsylvania St., which closed in June 2012. It reopened under new management in December.

Shares of International Paper, which trade on the New York Stock Exchange, have risen nearly 40 percent in the last year. They closed at $47.20 on Monday.



 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. On my rental property, before tax caps, I was paying $2,000/yr in property taxes. After the tax caps I'm paying $4,000/yr. How exactly am I "benefiting the most"?

  2. Nick, I too tried that new Walmart NM on Michigan a couple of weeks ago. I had the same feeling, it had good prices, but something was just off about it. I can't put my finger on what it is, but it just didn't feel right. On the plus side, it was easy to get in and out of and much less busy than a typical Walmart.

  3. @Young Hoosier - you might want to check out the Paris skyline again....it's decidedly taller than 7-8 stories http://all-that-is-interesting.com/paris-skyline-photo

  4. Are you in need of Loan or financial help?, you need a loan for your business or to solve other monetary issues. James Lewis Loan Company started offering loans with a very low interest rate of 3% for a minimum of 15 years, Interested applicants should submit their request via email (jameslewisloan@gmail.com) for immediate processing with the information listed below: Names in full:................ Address:...................... Gender:.................... Email:........................ Phone Number:....... Amount Required:... Loan Duration:....... Country:................. Occupation:.................. ================================== In acknowledgment to these details, I will send you a well calculated Terms and Conditions for the amount you require. Warm Regards, Mr James Lewis

  5. So the GOP legislature passed a bill that gave big breaks to business at the expense of Indiana families. Color us not surprised.

ADVERTISEMENT