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International Paper

(IP) - Get International Paper Company Report

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

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, 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

Champion International

.

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

.