No Restart at Texas Coated Paper Mill Shutdown by Hurricane

The owners of Pasadena Paper have closed the 190,000 tons/year coated paper mill at Pasadena, Texas. The mill shut September 21 for hurricane Rita evacuation and was never restarted due to the subsequent spike in the cost of energy.

A letter to the United Steelworkers union, which represents 200 of the mill's 300 workers, said the company defaulted on its loans from secured creditors and had no choice but to conduct an orderly liquidation. Most of the union-represented employees were terminated Friday but some will remain on payroll until Dec. 2 to clear the mill's inventory.

The mill made coated one-side and private branded coated two-sided freesheet sheets and web used in labeling, book-cover and commercial printing applications. It's grades ranged from 60-lb.book and 100-lb. cover to menu paper, playing card stock, release liners and facestock grades.

Pasadena Paper is owned by Belgravia Investments of Vancouver, which also owns the 220,000 tons/year West Linn coated freesheet mill in Oregon.