Clearwater Paper Closes Long Island Tissue Converting And Distribution Facility

(RTTNews) - Tissue maker Clearwater Paper Corp. (CLW) announced the permanent and immediate closure of its Long Island, N.Y., tissue converting and distribution facility.

The company will work closely with the New York Department of Labor's Rapid Response Unit to assist employees in receiving training or benefits that enable them to find new employment. The company will also provide career assistance services to help employees.

Displaced employees will have the opportunity to apply for open positions at other Clearwater Paper facilities. Employees will also be offered separation pay.

The company expects the total impact of non-recurring exit related costs to be $12-$15 million, of which approximately $10 million is expected to be incurred in 2014 and the remainder in 2015.

The cost savings benefits resulting from the facility consolidation and optimization are expected to be around $6 million in operating costs savings in 2014 and $12 million on an annual basis to be fully realized beginning in the first quarter of 2015.