Gov. Jeff Landry spoke to community officials, legislators and leaders in business, industry, education and economic development at Northwestern State University of Louisiana about the closure of the International Paper Red River containerboard mill in Campti.
The Red River containerboard mill is set to close in April and is estimated to leave nearly 500 residents of Natchitoches Parish unemployed prompting attention statewide.
On Feb. 13, International Paper, a global leader in sustainable packaging solutions, announced the permanent closure of the mill in a press release. After nearly 51 years of operation, the closure will reduce the company’s capacity by approximately 800,000 tons on an annual basis.
The company will also end all operations of its facilities including a recycling plant in Phoenix, Arizona, a box plant in Hazleton, Pennsylvania and a sheet feeder in St. Louis, Missouri.
According to the press release, the decision to close the four facilities was due to the company undergoing a transformational journey to becoming more sustainable. The company explained that this was a crucial step to invest in facilities that would best serve customers and improve quality, reliability and service delivery.
“The decision to close any facility is difficult because of the impact on our team members, their families and the surrounding communities,” Tom Hamic, executive vice president and president of North American Packaging Solutions International Paper stated in the press release. “We greatly appreciate the contributions from our departing team members and will do all we can to support them.”
According to the press release, around 495 hourly employees and 179 salaried employees of Campti and the surrounding area will be affected, leaving many residents and businesses concerned about the economic impact this will have on the parish.
Natchitoches Mayor Ronnie Williams Jr. acknowledged the devastation within the community. “Folks at International Paper, we have been grateful for them. Obviously, we wish that they could continue to be operating in Natchitoches Parish, but from a corporate level, they had decisions that they had to make and wanted to make, and I guess they felt that they needed to make. It does create a blow, a big void for us,” Williams told KALB.
Reba Phelps, Natchitoches Parish School Board (NPSB) president, explained to KALB that the mill closure will have a direct impact on the budget of the NPSB. She ensured that actions are in place for students to still receive an education.
“Specifically in that area (Campti), we do have to look at our student count and the location of those schools, and we will be adjusting where we need to adjust to make that budget and make sure our kids are educated properly and equitably,” Phelps said.
James Genovese, NSU president, released a statement regarding the impact of the closure. He explained that the university is exploring ways to support former workers of the mill with workforce training and professional development and offering pathways to new careers.
“We will work alongside the City of Natchitoches, Natchitoches Parish government and community leaders, and state and national elected officials to ensure that our region remains resilient and that new opportunities arise from this challenge,” Genovese said.
Landry visited NSU’s campus to offer support and assurance that the parish will be able to navigate through this economic hardship.
He shared that in the 1990s, he experienced first-hand a similar unfortunate circumstance working for St. Martin Economic Development Authority. He explained that shortly after the groundbreaking at the Port of Iberia, he got a call after the North American Free Trade Agreement was passed and that Fruit of the Loom was going to pull out of South Louisiana.
“I saw 3,000 jobs in the city of St. Martinville, and probably 800 jobs in Gen Ed, and 1,200 in Port Valley leave those small towns. So, believe me, there’s no one who understands the economic impact of the loss of these jobs more than me,” Landry said. “And it’s not only actual jobs that are leaving the Kennedy facility, but it’s the downstream effect of what it does to the small businesses that are attached to it.”
Landry addressed that the employees laid off will receive the proper compensation, but nothing can make up for what was lost within Campti.
“I spoke to the CEO personally and he laid out why and what they’re doing. He assured me that they were working to try to minimize the overall impact. I think they’re going to absorb some of those jobs,” Landry said. “In other words, some of the job losses in the campaign are going to actually go to Mansfield or they’re going to offer those, and I think they’re offering a number of severance packages as well.”
Landry explained that if voters respond accordingly on the March 29 proposed constitutional amendment ballot, then that will reform the tax code and bring opportunities of employment to the area.
“I don’t have all the answers today, I can tell you that we will continue to work towards building economic opportunities throughout Central and North Louisiana,” Landry said.
Susan Bourgeois, secretary of the Department of Louisiana Economic Development, shared how her department will move forward with restoring economic prosperity.
“I think it’s evident from the Governor’s remarks, because of all of that, that his intention is clearly to bring the full force of government to whatever we can do to mitigate both the human and financial reality of this decision by International Paper,” Bourgeois said, referencing the governor’s Fruit of the Loom story.
Bourgeois offered a couple of solutions to the challenging times. She explained that her department announced 20 active projects within the last several years and already has five active working wood-related projects in the north Louisiana region.
“Our team is now going to refocus and see if there’s opportunities for placement of employees, placement for product and how we can redeploy some of the Louisiana resources that were being used at the camping facility in those projects,” Bourgeois said. “We’re going to continue to work with our partners, our delegation and the rest of the cabinet to help with this.”
Susie Schowen, secretary of the Louisiana Workforce Commission, shared that her department has a lot of things going on the ground, including a rapid response team to respond to layoffs.
She explained that services are offered to the mill employees with two development boards in area 60 and area 70.
“So the International Paper workers are getting services like career counseling, you know, really envisioning where their career could go and helping them understand how to connect with training. Then, we can help to offset the cost of that training with a focus on getting people jobs right here in this area in the same industry that is being so impacted. Those same services again are available to anybody at our America Job Centers,” Schowen said.
The Louisiana Workforce Commission is partnering with regional academic development organizations towards a solution, which is enabled by Act 330 of last year’s legislature, to build regional hubs for business workforce solutions.
Schowen added that community engagement is crucial during this time. “It’s not going to look the same in every region of the state, so we’re very much looking forward to engaging with all of you as we move forward with these sorts of plans,” Schowen said.
With several residents and businesses of Natchitoches Parish expressing concern during these economically challenging times, several community officials, legislators and leaders are working toward a solution.
If you or someone you know is affected by the Red River containerboard mill closure, please visit here for job opportunities and other resources.
