Georgia-Pacific, a major player in the packaging industry, has decided to shut down its corrugated packaging plant in Mt. Olive, Illinois, by the end of December 2025. The closure, announced on October 31, 2025, will affect 134 workers and marks the company’s full exit from operations in the state.
This move comes amid tough market conditions where the facility can no longer compete effectively to serve customers. Company leaders point to long-term economic challenges as the main reason, not the efforts of the employees who have kept the plant running safely for years.
Details of the Closure Announcement
The announcement hit employees hard last week, with plans to keep the plant open for about two more months before the final shutdown on December 31, 2025. Georgia-Pacific shared the news through a statement, stressing that the decision stems from competitive pressures in the corrugated packaging sector.
Workers learned about the closure directly from management, and the company has pledged to maintain safe operations during the transition period. This plant has been a key part of the local economy in Mt. Olive, a small town in southern Illinois, where such facilities provide steady jobs.
Industry watchers note that this fits a pattern of consolidation in the packaging world, driven by shifting demand and supply chain issues.
Impact on Employees and Community
The shutdown will eliminate 134 positions, including both hourly and salaried roles. Many of these workers belong to the United Steelworkers union, which will soon negotiate the effects of the closure under their current contract.
Local families and the broader community in Mt. Olive face uncertainty, as the plant has been a major employer. Losing these jobs could ripple through the area, affecting small businesses and schools that rely on the economic activity from plant workers.
Experts estimate that each manufacturing job supports about two more in related services, so the total hit to the region might be even larger. Residents have expressed concerns about finding new work in a rural area with limited options.
- Job search assistance through local job fairs.
- Resume building workshops offered by community centers.
- Potential relocation support for those willing to move.
Reasons Driving the Decision
Georgia-Pacific cited the plant’s inability to stay competitive as the core issue. Rising costs for materials, energy, and labor have squeezed margins in the corrugated packaging industry, which produces boxes and containers for shipping goods.
Recent data from industry reports shows a 5 percent drop in demand for corrugated products in the Midwest over the past year, linked to slower e-commerce growth and supply chain shifts. The company has faced similar challenges elsewhere, leading to other closures.
For instance, earlier in 2025, Georgia-Pacific closed a containerboard mill in Georgia due to market pressures. These moves reflect broader trends where companies consolidate operations to cut costs and improve efficiency.
Logical reasoning suggests that without changes, more facilities could face the same fate as global competition intensifies from overseas producers.
Company Support and Transition Plans
Georgia-Pacific is stepping up to help affected workers. The company, owned by Koch Industries, is exploring internal job openings at other locations for those who qualify.
They are also linking employees with external opportunities, including partnerships with Koch’s network of businesses. A spokesperson emphasized that the focus remains on a smooth transition while honoring the workers’ contributions.
Union negotiations will cover severance, benefits, and retraining programs. The company plans to decide on the property’s future after fully vacating the site.
| Recent Georgia-Pacific Closures | Location | Jobs Affected | Closure Date |
|---|---|---|---|
| Mt. Olive Corrugated Plant | Illinois | 134 | Dec 31, 2025 |
| Milan Corrugated Facility | Michigan | 119 | July 2024 |
| Emporia Plywood Mill | Virginia | 550 | May 2025 |
| Atlanta-Area Plant | Georgia | 103 | Early 2025 |
Broader Industry Trends and Outlook
The packaging sector is navigating big changes, with sustainability demands pushing for recycled materials and automation. Georgia-Pacific, based in Atlanta, operates dozens of plants across the U.S., producing everything from boxes to tissue products.
This closure aligns with industry-wide consolidation, as seen in moves by competitors like Packaging Corporation of America, which shut a Georgia plant earlier in 2025. Economic factors, including inflation and supply disruptions, continue to pressure manufacturers.
Looking ahead, experts predict more shifts as companies adapt to online shopping trends and eco-friendly regulations. For Illinois, this exit leaves a gap, but it could open doors for new industries like renewable energy.
What This Means for the Future
Workers and communities hit by such closures often rebound through innovation and support programs. In Mt. Olive, local leaders are already discussing ways to attract new businesses to fill the void.
On a national scale, this highlights the need for policies that protect manufacturing jobs amid global competition. As the industry evolves, staying informed about these changes can help workers prepare for what’s next.
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