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Georgia Pacific to Lay Off 300 Workers

April 4, 2003

OLD TOWN, Maine (AP) _ Georgia-Pacific Corp. announced Friday that it will retire its two tissue-manufacturing machines at its mill, a move that puts about 300 employees out of work.

The Atlanta-based company said tissue production at the mill will be shifted to Georgia-Pacific mills elsewhere. The pulp operations and dryer in Old Town will continue to operate, enabling the mill to retain more than 200 jobs for now.

Georgia-Pacific officials said hourly employees who are losing their jobs will be paid for 60 days along with unused vacation time. Salaried employees are eligible for severance benefits.

``The decision has nothing to do with the quality work force at Old Town; they’ve done an outstanding job,″ said David Spraley, a senior vice president with Georgia-Pacific. ``However, the overcapacity of paper, the mill’s geographic locations and energy and fiber costs make this decision necessary.″

The tissue machines that are being retired made about 9.2 million cases a year of Brawny, Vanity Fair and Quilted Northern bath and napkin products.

In trading on the New York Stock Exchange, Georgia-Pacific shares fell 14 cents to close Friday at $13.81.

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