G-P Idles Memphis Facility
G-P Gypsum is idling its West Memphis gypsum wallboard facility in the first quarter of 2014, reported Michael Sheffield of the Memphis Business Journal.
The 300,000-square-foot facility was previously owned by Temple-Inland and then acquired by Memphis-based International Paper Co. in 2012, when the company acquired Temple-Inland. Georgia Pacific bought it along with 14 other facilities from IP earlier this year for $710 million.
G-P’s Eric Abercrombie said the company was looking for ways to “optimize” its manufacturing operations, and because of the slow recovery in the building products market, opted to move operations elsewhere. The manufacturer has another drywall facility in Cumberland City, Tenn., that will handle some of the production.
“We’re calling this an idle vs. a closure because a closure would mean we’re selling the asset,” Abercrombie told the Memphis Business Journal. “We’re slowing down the operation and maintaining the equipment with the option of bringing it back.”
He said some of the employees would be retained by the company and offered jobs at other facilities.