Clearwater Paper reduces production, employees at Arkansas mill

Packaging Dive reported the development on 2026-04-10. The curtailment comes amid ongoing demand pressure for SBS due to an industry oversupply. The company expects to return the mill to full production at some point — if SBS markets rebalance or it converts the mill to produce CUK.

The report places the news in a wider commercial context. Clearwater Paper announced Thursday it’s restructuring its solid bleached sulfate mill in Cypress Bend, Arkansas. It plans to halve production and reduce the salaried and hourly employee count by about 20%. Of the 320 people who worked at that mill, the downsizing affected about 70: Approximately 50 people were laid off, and 20 open positions will not be filled, a spokesperson said via email.

For the food sector, the practical implications extend beyond the immediate announcement. The company expects the changes will result in $8 million to $12 million of annualized cost savings and won’t affect shipment volumes. Demand for SBS has been under pressure for more than a year due to a market oversupply. Clearwater Paper cited those dynamics as the reason for curtailing production at Cypress Bend.

Attention now turns to how companies, customers and regulators respond. “We are faced with a supply driven downturn in our industry that is pressing margins and cash flows. We’ve made this difficult decision to improve our operating rates and reduce costs,” said President and CEO Arsen Kitch in a statement.