Dixie Cup manufacturer Georgia-Pacific has announced it is shuttering its Brampton plant later this year.

The company announced the closure on Monday, July 30, adding it will be laying off the plant’s 128 manufacturing workers and five customer service positions.

“We have announced to our employees in Brampton that we will permanently close the facility no later than the fourth quarter of this year,” said company spokesperson Kelly Ferguson.

Ferguson called the move a decision based on the company’s business needs and customer demand. The plant, located at 228 Queen St., has been manufacturing Dixie Cups since 1949.

“(The decision) has nothing to do with the quality of work from GP’s employees there. They’ve operated the facility safely and productively for many years. It’s just a matter of customer demand not being where it used to be,” Ferguson said.

While not providing an exact closure date, the company says it will operate at least part of the plant into the fourth quarter of this year to fulfil existing customer orders.

The company is assuring workers full severance will be paid to all employees as per the union contract, and will offer additional supports.

“We do understand how this decision impacts our employees, their families and the community. We are committed to working with the union leadership at the plant and our employees throughout the remainder of the year to discuss opportunities at other GP locations, as well as provide them access to local support agencies and job-placement resources,” said Ferguson.

Ferguson added current political tensions and trade uncertainty between Canada and the U.S. were not a factor in the American-based company’s decision.

“We kind of expected the trade and tariffs conversation. This decision was strictly based on market demand and was in no way influenced by politics or tariffs or anything like that.”