Sappi Fine Paper closes Muskegon mill

GRAND RAPIDS, Mich. (WOOD) - Sappi Fine Paper will halt operations at its Muskegon paper mill, the company announced Wednesday.

About 190 employees, both salaried and hourly, will lose their jobs. They have been on unpaid leave since March 2009, when operations at the mill were suspended.

Sappi must close the Muskegon facility in order to stay competitive in the market, according to a press release. Lately, there has been a weak demand for coated fine paper worldwide.

Sappi is headquartered in Johannesburg, South Africa and produces paper used in the production of magazines, calendars and brochures. The company employs 15,000 people worldwide. Production will continue at other locations, such as ones in Maine and Minnesota.