Georgia-Pacific, a major paper-product manufacturer, has confirmed the permanent closure of its plywood mill in Emporia, Virginia. This decision will result in the loss of 554 jobs.
The company, based in Atlanta, announced the closure on May 2, 2025, and outlined its plans to cease operations at the Emporia plant by July 1, 2025.
Reasons for Closure
The closure of the Emporia plywood mill stems from lagging home sales, a factor that has greatly impacted the company’s plywood division. Georgia-Pacific explained that the housing market‘s struggles, including low home sales and affordability challenges, were key contributors to the shutdown.
Many of the company’s plywood products are used in home repair and remodeling projects, which typically occur during home ownership changes.
The company stated, “Housing affordability challenges and a 30-year low in existing home sales are impacting our plywood business, as many of our plywood products are used in repair and remodel projects, which often occur when homes change ownership. To align with current demand, we are reducing our production capacity.”
Employee Support and Severance Package
Georgia-Pacific has committed to offering its affected employees a severance package that includes 60 days of pay along with benefits.
Additionally, the company plans to support employees by connecting them with local job placement services and support agencies, along with opportunities for employment within Georgia-Pacific or its parent company, Koch Industries.
Impact on the Local Community
The Emporia plant, located on Davis Street in Emporia, is one of four Georgia-Pacific sites in Virginia. The closure impacts both employees and the local community, with Rep. Jennifer McClellan, D-Virginia, expressing her concern for the workers affected.
In her statement, she expressed sympathy for the employees, saying, “My heart goes out to every family who now faces increased anxiety and potential hardships” due to the plant’s closure. She added that her office would assist the displaced workers by providing job placement support and directing them to local resources.
Other Georgia-Pacific Sites in Virginia
The Emporia plywood mill is just one of Georgia-Pacific’s four facilities in Virginia. The company operates other plants in the state, including:
Location | Type of Facility |
---|---|
Martinsville | Corrugated-Container Plant |
Big Island (Bedford County) | Containerboard Plant |
Gladys (Campbell County) | Oriented Strand Board Plant |
The closure of the Georgia-Pacific plywood mill in Emporia marks a significant loss for both the affected employees and the surrounding community. With 554 workers facing uncertainty, the company has pledged to offer support through severance packages and job placement assistance.
As the plant prepares to shut down by July 1, the community and local representatives are committed to helping the affected families transition through this challenging time.