Tacoma paper mill to halt operations after 90 years, 400 jobs impacted

TACOMA, Wash. — The Tacoma paper mill will permanently cease operations at the end of September. The announcement was made earlier this month by the WestRock Company, which owns the mill.

“WestRock is working to optimize our operational footprint and consolidate production to improve our return on invested capital, and we have made the difficult decision to close the Tacoma mill as part of this effort,” the company said in a news release.

The company said high operating costs and the need for significant capital investment were the factors that determined the decision to close.

Currently, 400 workers are employed at the Tacoma mill. WestRock said employees will receive severance and outplacement assistance in accordance with the company's policy and labor union agreements.

RELATED: WestRock to close Tacoma paper mill, lay off 400 employees

CEO David B. Sewell said that they are committed to assisting our Tacoma team with exploring roles at other WestRock locations and nearby companies as well as providing outplacement assistance.

The Tacoma mill produces 510,000 tons of Kraft, white top liner, and bleached pulp annually. WestRock said the majority of its Kraft and white top liner will be manufactured in other company-owned mills. Because of the closure, however, WestRock said it will reduce its annual production of pulp by 60,000 tons and specialty grade capacity by 25,000 tons.

The mill is slated to close Sept. 30, 2023.

For more than 90 years, the Tacoma Paper Mill and its smokestacks have been a part of the city’s skyline.

Anybody who’s driven through has likely seen the plumes of smoke when looking at the port, but now there is a new chapter for that property, as operations there are shutting down.

Bill Johnson’s family and the Johnson Candy Company have been in business in Tacoma a little longer than the mill. He is a lifelong resident and familiar with the building.

“I did hear they’re closing,” Johnson said. “We’ve always been aware of the smell that the paper mill’s been famous for,” Johnson said, “but it has gotten a lot better since I was young.”

“Tacoma’s always been a little bit of a blue-collar town,” Johnson said, “I know anytime something like this happens, there’s a lot of people losing jobs.”

Andrea Reay, the President of the Tacoma Pierce County Chamber, said they are trying to keep those employees and families in the city. She said they are working with partners to try and find them new job opportunities.

In the meantime, the closure of the paper mill could also affect your water bill.

“It’s an economic impact of about $25 million in power and water. In fact, it’s 7% of Tacoma Water’s revenue comes from West Rock,” Reay said.

We brought those questions up to Tacoma Public Utilities, who said their board meeting is happening Wednesday night to address that issue.

“All rate increases must be approved by both the Public Utility Board and the Tacoma City Council. Tacoma Water staff will be presenting a variety of scenarios to policymakers that could potentially increase water rates to compensate for the loss of approximately 7% of Water’s annual revenue.”

They said staff will continue to look into the financial impacts from the paper mill closure and how any related rate increases can be minimized, “including increased marketing of our water supply to the wholesale market and is analyzing the operational impacts with the pending loss of approximately a 1/3 of our average day demand.”