Georgia Pacific Announces Reductions in Production
Based on analysis of its gypsum wallboard production capacity, the company will close wallboard plants at Savannah, Ga.; Long Beach, Calif.; and Winnipeg, Manitoba, Canada. The company also will indefinitely idle commodity wallboard production lines at Acme, Texas; Sigurd, Utah; and Blue Rapids, Kan.; and reduce operations at its remaining 13 wallboard production facilities to a maximum five-day work schedule for as long as current market conditions exist. In addition, Georgia-Pacific will offer for sale its recycled paperboard plant at Delair, N.J., due to the decreased need for face paper used on the company's wallboard. The company expects to take a charge against earnings in second quarter 2001 of approximately $75 million to cover all costs associated with these actions, including severance and other related costs.