BELLINGHAM, Washington. March 25, 1999 -- Georgia-Pacific said today it will permanently close its chlor/alkali manufacturing operations here by the fourth quarter of 1999. The facility produces elemental chlorine and caustic soda used in the bleaching process at the company’s adjacent pulp and paper operations and for sale to outside customers.

The announcement follows an earlier decision by Georgia-Pacific to convert to a pulp bleaching process that will not use elemental chlorine. Changes in the pulp bleaching process are projected to be completed by the end of 2000. During the interim period, Georgia-Pacific will purchase chlorine from outside sources.

“We are concerned about the impact this closure will have on our employees,” said Jim Cunningham, general manager - Bellingham operations. “However, this decision is consistent with our long-term plan of not using elemental chlorine at Bellingham.

“The facility will be closed in compliance with state regulations. We also are evaluating the feasibility of alternate chemical manufacturing on the site,” Cunningham said.

Up to 60 employees may be affected by the closure, including production workers and support staff. Hourly employees affected will be governed by our collective bargaining agreement. Salaried employees who lose employment as a result of this closure will be eligible for benefits under the terms of the Georgia-Pacific Corp. 1996 Severance Pay Plan.

Georgia-Pacific will strive to ensure that its current customers continue to have their supply needs met.

“Continuing to operate this plant is inconsistent with our growth strategy for chemicals, which focuses on further expansion into specialty chemicals businesses,” said Mario Concha, Georgia-Pacific vice president - chemicals and resins.

The Bellingham mill began operation in 1925 as a tissue converting plant and evolved over the years into a major pulp, paper and chemical complex. Georgia-Pacific acquired the operation from Puget Sound Pulp and Timber Co. in 1963 and added the chlorine plant in 1965. Georgia-Pacific currently employs 866 people at its Bellingham operations.