Glatfelter to cut capacity at Ecusta

Pulp & Paper, Feb 2000

PH. Glatfelter Co. said it would shut down production capacity at its Ecusta Div. in Pisgah Forest, N.C., during the first half of the year due to declining profitability of its tobacco papers business. The capacity reduction is the result of anticipated volume losses following the company's announcement in September that it would raise tobacco paper prices on Jan. 1.

The exact timing and amount of capacity reductions will depend upon how quickly customers establish new sources of supply and the extent to which they do so, Glatfelter said.

The company could reduce the workforce at the Ecusta Div. by as much as 300 people, depending on how many paper machines are shut, but manufacturing capacity could be reduced by up to onethird.