WestRock to close Tacoma paper mill, lay off 400 employees

TACOMA, Wash. — WestRock Company’s paper mill in Tacoma, Wash. will permanently close, stopping production by Sept. 30, 2023.

The combination of high operating costs and the need for significant capital investment were the determining factors in the decision to stop operations at the mill, WestRock said.

Currently, 400 workers are employed at the Tacoma mill. WestRock says employees will receive severance and outplacement assistance in accordance with the company's policy and labor union agreements.

“One of the most critical factors we consider when making the difficult decision to close a facility is the impact it will have on the lives of our team members," said WestRock CEO David B. Sewell. "We are committed to assisting our Tacoma team with exploring roles at other WestRock locations and nearby companies as well as providing outplacement assistance.”

The Tacoma mill produces 510,000 tons of kraft and white top liner and bleached pulp annually. WestRock said the majority of its kraft and white top liner will be manufactured in other company-owned mills. Because of the closure, however, WestRock says it will reduce its annual production of pulp by 60,000 tons and specialty grade capacity by 25,000 tons.

The company said it is committed to improving its return on invested capital, as well as maximizing the performance of its assets.