Aug 08, 2007. /Lesprom Network/. Following its original mill closure announcement in May, International Paper announced on August 7, 2007 it will officially close its Terre Haute, Indiana, containerboard mill on October 1. The decision to close the mill was the result of the company's study of options for strengthening its containerboard business. That study concluded Terre Haute's limited production capacity hindered the mill's long-term competitiveness. The company explored selling the mill, but, ultimately, the same limitations that made continued operations unfeasible made sale unfeasible as well. "Today's announcement brings the mill's operations to a final close," said Glenn Landau, vice president and general manager of International Paper's containerboard business. "We know this has been a difficult period for our employees, but we commend them for their dedication and professionalism in continuing to operate well and safely. We will continue to work closely with all of the affected employees to provide them with services including severance and medical benefits, as well as job placement assistance." The Terre Haute Mill employs approximately 170 people and annually produces approximately 200 000 tonnes of medium, a type of paperboard used in corrugated packaging. The mill began operations in 1917 and was acquired by International Paper in 1998 as part of the company's acquisition of Weston Wabash Co. International Paper, founded in 1898, is a global uncoated paper and packaging company with primary markets and manufacturing operations in North America, Europe, Russia, Latin America, Asia and North Africa. Its uncoated papers and packaging businesses are complemented by xpedx, North America's largest distributor of printing papers and graphics supplies and equipment. Headquartered in the United States, International Paper employs approximately 54 000 people in more than 20 countries, and serves customers worldwide. Annual sales are about $22 billion.