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In a decision blamed on outdated machinery too pricey to maintain, the storied WestRock recycled paper plant off Vandalia Street and University Avenue on the western edge of St. Paul will lay off 130 of its 360 workers, ending the production of corrugated paper at the location.

A separate unit at the site dedicated to the production of coated recycled board will remain in operation.

In a written statement, chief executive officer David Sewell called the partial plant closure “a difficult decision to make” and said the company, based in Atlanta, plans to assist the team members in exploring other roles at other WestRock locations, among other outplacement services provided through company policy and labor union agreements. They’ll also receive severance pay.

“WestRock is committed to improving its return on invested capital as well as maximizing the performance of its assets, and the corrugated medium machinery at the St. Paul location would require significant capital investment to maintain and improve going forward,” reads the statement. The shutdown will reduce the production of corrugated medium paper by 200,000 tons annually.

The St. Paul location dates back to 1907, when Michael Waldorf launched a factory that has grown to become the state’s oldest and largest paper recycler.

Georgia-based RockTenn bought the St. Paul operation as part of a $410 million deal in 1996. WestRock, one of the world’s largest corrugated packaging companies, was formed in 2015 through the merger of RockTenn and MeadWestvaco.

The St. Paul location has been known to recycle up to 1000 tons of paper per day, or half of all the paper recycled in Minnesota.

The package shipping industry has endured a softening market and a difficult few weeks, reflected in stock market performance for WestRock, International Paper and the Packaging Corporation of America.

Still, long-term outlooks are healthier as analysts expect demand for international packaged goods to increase over the next decade in step with online sales globally and the growth of emerging economies.Related Articles Local News | After 10 years as YouTube’s ‘song-a-day guy,’ St. Paul musician still keeps things low-key Local News | Meet St. Paul’s police chief finalists: Why do they want the job? And what are their priorities? Local News | Complaints over locked downtown St. Paul skyway referred to city attorney Local News | St. Paul police: 1 motorist killed in East Side collision Local News | Youth basketball in St. Paul sees nearly 40 percent registration increase, city to waive fees for kids 9 to 18

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