Business

Smurfit-Stone Container Corp, the US containerboard manufacturer, is to stop production at its pulp mill in Portage-du-Fort in Quebec on 31 October in response to the weakening pulp market.

Smurfit-Stone said that it expects to take restructuring charges of $39m (£22.3m) in the fourth quarter of 2008. However, the closure will benefit cash flow in the fourth quarter, the company said.

The closure will result in the loss of 218 jobs.

Steve Klinger, Smurfit-Stone president and chief operating officer, said: "The mill produces Northern Bleached Hardwood Kraft paper-grade pulp, which is not core to the company's transformation strategy.

"The rapidly deteriorating conditions in the pulp market necessitate that the company take prompt action to avoid cash losses."

Smurfit-Stone has completed or announced the closure of five box plants so far this year and trimmed 150 jobs in the second quarter. Since it began restructuring in 2005 the company has cut 5,725 jobs.