Pactiv Evergreen, the company that operates Evergreen Packaging in Pine Bluff, is exiting the coated groundwood paper business and will "permanently cease" production of coated groundwood paper at its Pine Bluff, according to a news release.
The move could impact 390 positions, based on a report of top employers in Jefferson County that lists employment numbers.
Evergreen will continue to "strategically invest" in the Pine Bluff mill, "which will remain an essential facility in the Pactiv Evergreen operations network, serving the fiber-based beverage packaging market," stated the release.
"With the decline in the coated groundwood market, our decision to exit this business enables us to re-invest resources into our strategic core competency of liquid packaging board as well as other more profitable segments across the enterprise," Mike King, CEO, said in the release. "Pactiv Evergreen will continue to employ more than 650 employees at the Pine Bluff mill, where liquid packaging board and extrusion manufacturing will remain."
A list of "Major Employers" on the Jefferson County Alliance website says Evergreen currently has 1,040 employees.
There are two paper machines at the Pine Bluff mill. The "number one" machine, as it is referred to, is the one that makes coated groundwood paper, which is paper that used in such items as glossy magazines and advertising circulars. The much larger "number two" machine makes coated paper used in milk and juice cartons, among other items.
"Pactiv Evergreen will work directly with our coated groundwood customers to meet their product needs and support their transition to new suppliers until production ends in Q4," stated the press release. "The company expects to complete the closure by October 31, 2021, with shipments continuing until inventory is depleted."
The news release said Evergreen will work with impacted employees and union leadership during the transition.
"We are committed to helping support our team members during this difficult time," the release stated. "This decision is not reflective of the hard work and dedication of our team members nor the performance of the mill, but the reality of the coated publications business outlook. The company thanks its hard-working team members for their many contributions. We also thank our long-term customers for their loyalty and understanding of this decision and are committed to working with them during this transition."
International Paper Co. announced in 1956 that it was going to build a paper mill in Pine Bluff. In 2007, the company that created Evergreen Packaging bought the Pine Bluff mill.