Boise Cascade LLC unit Boise Paper said it plans to close its paper converting facility in Salem, Ore.
Boise Paper aims to phase out operations over the next nine months, the parent company said in a release. The company plans to close the 100-employee facility at the end of the third quarter and sell the property.
“Demand and supply patterns for paper are changing and we have excess sheeting capacity,” said Miles Hewitt, Boise Paper senior vice president and general manager.
In an effort to increase efficiency and manage costs, the company began analyzing its paper-converting operation a year ago, he said.
Originally a paper mill, the retrofitted plant in Salem was not cost-competitive, he said.
“And, given the property value of that location, it was not the highest and best use of the property,” Hewitt said. “We studied the feasibility of relocating the facility. However, given the changing demand for paper, we concluded that the best alternative is to close the Salem facility and consolidate our sheeting operations into other facilities."
Boise Paper plans to seek a buyer that supports Salem’s vision to promote more mixed-use development downtown, he said.
The company’s box plant in Nampa will remain open, Hewitt said.
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