Canada-based green packaging and tissue paper products manufacturer Cascades has announced its plan to close down its de-inked pulp mill in Auburn, Maine.
Currently, the US-based plant employs 45 people and the company said it will be closed by 15h July this year.
Cascades' specialty products group president and chief operating officer Luc Langevin said: "The rapid erosion of the printing and writing paper market, the overall deterioration of market conditions for de-inked pulp, and the low potential for integration with other Cascades activities are all factors with significant negative consequences for our Auburn plant.
"Despite major efforts to optimise in the past year, the situation at the plant remained extremely difficult.
"Therefore, we are unfortunately forced to cease operations."
Following the closure, Cascades will evaluate the possibility of relocating staff affected by the closure to other units.
Established in 1964, Cascades produces, converts, and markets packaging and tissue products, which are composed mainly of recycled fibres.
Cascades currently employs 11,000 people at around 90 production units in North America and Europe.