NEENAH, Wis. (WBAY) – Clearwater Paper says it will permanently shut down two tissue machines in Neenah, impacting 85 jobs at the facility.
The company says the move is part of a restructuring plan and will begin Dec. 31, 2016.
Three tissue machines will continue to operate at the Neenah plant.
“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,” said Glenn Taylor, vice president of manufacturing for Clearwater Paper’s consumer products division.
The Clearwater Paper building is located at 249 N Lake Street in Neenah. A company spokesperson says Clearwater employs more than 400 people in Neenah.
The restructuring plan also calls for the permanent closure of Clearwater Paper’s Oklahoma City plant in March, impacting 131 employees there.
A statement from Clearwater Paper says the company will work with employment agencies to help affected employees.
Clearwater Paper says restructuring will amount to savings of $10 million per year.
In October, Clearwater Paper announced third quarter earnings of $435.3 million, down 1.6 percent from 3Q in 2015.
Clearwater Paper has locations across the country. The headquarters are located in Spokane, Washington.