Clearwater Paper reduces SBS production at Arkansas facility

Clearwater Paper Corporation announced a restructuring of its Cypress Bend facility in Arkansas, resulting in a reduction of approximately 20% of both salaried and hourly positions at the site. As part of the restructuring, the company plans to operate the facility at around half of its production capacity. The measures are expected to generate annualised cost savings in the range of USD 8 to 12 million, while maintaining current shipment volumes.

The decision reflects ongoing challenges linked to a supply-driven downturn in the solid bleached sulfate (SBS) market, which continues to put pressure on margins and cash flow across the industry. “We are faced with a supply driven downturn in our industry that is pressing margins and cash flows. We’ve made this difficult decision to improve our operating rates and reduce costs,” said Arsen Kitch, President and Chief Executive Officer of Clearwater Paper.

He added: “Our Cypress Bend mill is well invested and cost competitive, and we intend to return the mill to full production in the future when SBS industry conditions improve or through an investment in swing CUK capabilities.”

Clearwater Paper confirmed that support measures will be provided to affected employees, including severance packages, healthcare subsidies, and outplacement services. The company will also engage with the union through effects bargaining as part of the process.