Wausau Paper said it will close its Brokaw paper mill in Wisconsin and cut 450 jobs and will exit its print and color business. The company, which would cut both contractual and permanent jobs, expects after-tax closure-related costs and impairment charges of about $49 million, or $1.00 per share, in the fourth quarter.Rising costs of key raw materials, such as recycled fibre and energy, and lower demand from China have hit several paper companies.The Brokaw mill will be permanently closed by March end, the company said in a statement.Wausau Paper will exit the print and color business by selling the brands it owned to Neenah Paper Inc. Financial details of the deal were not disclosed.
Neenah Paper, Inc. (Neenah) is producer of fine papers and technical products. Shares of NP traded higher by 1.85% or $0.36/share to $19.87. In the past year, the shares have traded as low as $12.92 and as high as $23.75. On average, 103438 shares of NP exchange hands on a given day and today's volume is recorded at 122644.
Source
