Georgia-Pacific Gypsum LLC is permanently shutting down its entire gypsum manufacturing facility at 1240 Alexander Ave. in Tacoma, eliminating 120 jobs by the end of October. The closure hits a range of roles, including forklift operators, electricians, supervisors and managers, production associates, maintenance workers, and loaders.
The company informed employees of the closure in a letter dated September 1, 2026, and filed a formal closure notice with the Washington Employment Security Department, according to KOMO. Affected employees are expected to be laid off on October 30, 2026, though the station reports some positions could end earlier or later depending on business needs, and some workers may stay on beyond that date to help wind down operations.
Georgia-Pacific has said it will comply with both federal and state Worker Adjustment and Retraining Notification laws, providing all affected employees at least 60 days of pay and benefits. Affected employees do not have bumping rights, the report notes. Some of the plant's hourly workers are represented by Teamsters Local 117, which is affiliated with the International Brotherhood of Teamsters.
Why the Plant Is Closing
Georgia-Pacific has attributed the shutdown to an ongoing decline in consumer repair and remodeling activity dating back to 2022, according to NEWStalk 870. Residential repair and remodeling spending is the primary demand driver for gypsum wallboard, meaning a prolonged slowdown in that sector directly squeezes plant output and staffing needs.
The Tacoma facility manufactures specialty construction materials, including fiberglass-mat-faced moisture-resistant gypsum boards and exterior sheathing with integrated air barriers, according to product specifications listed by Building Clean. Those specialized product lines serve regional commercial and residential builders, making the plant's output closely tied to broader construction demand.
Inside the Port of Tacoma Site
The plant sits on a 15.5-acre parcel in the Port of Tacoma Tideflats industrial area and uses a natural gas-fired wallboard dryer with seven drying zones, according to Puget Sound Clean Air Agency documents filed in August 2024. The facility has emitted roughly 49,843 metric tons of CO2 equivalent annually in recent reporting, according to the U.S. Environmental Protection Agency, generated entirely through stationary natural gas combustion for its heavy thermal drying process.
The Tideflats corridor near Alexander Avenue is already dealing with disrupted freight mobility, as Hoodline reported in July that the nearby Fishing Wars Memorial Bridge over the Puyallup River will remain closed until roughly 2033, sending heavy freight traffic onto extended detours around the river crossing.
Worker Protections and Corporate Backing
The closure notice arrives under Washington's newly enacted Securing Timely Notification and Benefits for Laid-Off Employees Act, or WA-WARN Act, which took effect in July 2025 and requires employers with 50 or more full-time workers in the state to give 60 days' advance notice before mass layoffs or plant closures, according to legal analysis from Onwards HR. Workers affected by WARN closure filings become eligible for state Rapid Response services, which the Washington State Employment Security Department says offer job retraining, placement assistance, and unemployment benefit coordination.
Georgia-Pacific LLC has operated as an independently managed subsidiary of Wichita, Kansas-based Koch Industries since Koch completed its $21 billion acquisition of the forest products manufacturer in December 2005, according to filings with the U.S. Securities and Exchange Commission. The company has scaled back Washington operations before, including permanently shutting down kraft pulping and major processing units at its historic Camas mill, according to records from the Washington State Department of Ecology.
Part of a Broader Wave of Washington Layoffs
The Tacoma closure adds to a string of major WARN filings across Washington in 2026. T-Mobile cut 77 state positions and closed seven stores in August, as Hoodline previously reported, while Meta eliminated 331 Washington roles back in March. Those filings span technology, telecom and now industrial manufacturing, underscoring a broader contraction touching multiple sectors of the state's workforce this year.
