Citing the weak global economy and reduced demand, International Paper, or IP, has closed its pulp mill in northeastern Louisiana, terminating 550 employees.

Memphis, Tennessee-based IP had announced the seven-week shutdown of its plant in Bastrop; but now that closure will be shut indefinitely.

Salaried employees will be offered severance packages. The company will negotiate with union officials to determine benefits for line workers.

The company is Morehouse Parish's largest private employer with a $30 million annual payroll. Bastrop Mayor Clarence Hawkins said direct sales and property taxes paid by IP accounted for $3 million to $4 million of the city's annual $11 million budget.

In June 2007, Canadian paper manufacturer Tembec shut its paper mill in St. Francisville, putting 540 employees out of work and eliminating a $50 million annual payroll.

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