Clearwater Paper in Neenah is laying off approximately 85 workers at the end of the year.
The company said that they are permanently shutting down two of the highest-cost tissue machines at the Neenah facility.
“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.
Eighty-five of the 400 employees at the Neenah facility will be laid off, and the company will be removing a total production capacity of 32,000 tons beginning December 31, 2016.
“Clearwater Paper’s employees remain our primary consideration and we are working to do as much as we can for those affected by utilizing all resources to help them through this difficult time,” said Pat Burke, group president for Clearwater Paper. “We are working with local and state agencies to supply multiple job options to the employees.”
Clearwater Paper is a large provider of private label tissue to retail grocery stores and wholesale distributors.
The facility is located in the 200 block of North Lake Street in Neenah.