IP to close Clinton, Iowa, food packaging facility

(Courtesy of Convertingloop.com)

CLINTON, Iowa, July 24, 2001 - International Paper announced this morning that it plans to permanently close its Clinton, Iowa, Foodservice facility.

The closure is expected to be completed over the next 16 weeks. Approximately 335 employees will be released as a result of this decision.

"We certainly regret it is necessary to close the Clinton Foodservice facility," said Barry Hentz, Foodservice vice president. "The Clinton employees are respected members of the Foodservice team, but unfortunately it was a matter of the facility's economics."

The Clinton facility has seen the steady decrease in business since exiting the Retail Food Packaging market. The facility currently produces folding carton containers for the foodservice industry, but this product line has seen significant market erosion to other packaging alternatives.

"We will work with employees and the community to minimize the impact this decision will have. The Clinton facility has been a part of IP for over 40 years and we are sad to see that relationship end," Hentz said.

The Foodservice Business offers a wide variety of disposable packaging including cups, lids, cartons, bags, containers, trays, and plates. The business has over 3,000 employees and 12 plants across the globe. The Foodservice Business is part of the Consumer Packaging Group, which also includes Beverage Packaging, Shorewood Packaging and the Bleached Board system.