Cloquet mill to lay off about 250 workers

Sappi Fine Paper North America will temporarily lay off about 250 workers from its mill in Cloquet, Minn., on July 21, closing its paper-making operations for eight days to reduce inventory.

In a statement, the company said the move will not affect its ability to supply paper to its customers.

Dave Little, president of United Steelworkers Local 1163, which represents workers at the mill, said Sappi's inventory is high because of the strength of the dollar. That makes the U.S. market attractive to global competitors.

The company has about 730 employees. Many are nervous, Little said.

"The paper industry isn't what it used to be," he said. "You have mills and plants shutting down all over the country. So anytime something like this happens, there's concern. But I think this is just a blip on the radar."

Two years ago the company spent $170 million to convert half of the mill's production from paper to a cellulose product largely used in textiles.

The mill's cellulose operations will not be affected by next week's shutdown.

Last year, Sappi cut 27 positions from the Cloquet mill as it cut its North American workforce by 5 percent.