Wednesday, November 30, 2016 11:15 am

SPOKANE, Wash. (From the Appleton Post Crescent) -- Clearwater Paper Corporation announced Tuesday it will permanently shut down two of the company's highest cost tissue machines Dec. 31 at its Neenah facility, eliminating 85 of its 400 employees.

Clearwater Paper's facility is at 249 N Lake St. Its three remaining tissue machines will continue to operate, manufacturing private label and away-from-home tissue products.

"Although a difficult decision when considering the impacted employees at Neenah, we expect the plant's restructuring to lower our overall costs and significantly strengthen the facility," said Glenn Taylor, vice president of manufacturing for Clearwater Paper's consumer products division.

The company said in a release that it will work with state employment agencies to assist employees with training, educational benefits and other benefits that enable them to find new employment. The company will also provide private career assistance services.

The shutdown will remove a total production capacity of 32,000 tons.

The company also announced the permanent closure of its Oklahoma City converting facility as of March 31, 2017, cutting 131 employees. It will move that production to other Clearwater Paper facilities.

According to a prepared statement, the company expects non-recurring exit-related costs will be $13 million to $16 million, with $4 million to $6 million of that total incurred this year and the remainder in 2017. The cost savings benefits resulting from "facility consolidation and optimization" are expected to be $10 million annually.

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