will close its lumber operations at plants in Passadumkeag and Costigan, Maine, and 263 employees will lose their jobs.
The formal closure is expected in mid-April. The forest products and paper company cited poor market conditions and the effects of lumber imports as the reasons behind the closures. A chipper operation will continue indefinitely at the Costigan site, the company said in a press release.
The shutdowns follow the plans by the company, a member of the
Dow Jones Industrial Average
, to close its Washington, Ga., lumber mill. By closing the operations, International Paper will reduce its lumber production by 13%.
The Maine plants became part of International Paper last June, when the company acquired
International Paper, which is based in Purchase, N.Y., was down $1, or 2.6%, to $36.89 in recent trading on the
New York Stock Exchange