Georgia-Pacific has announced it will lay off 300 workers and shut down its Plywood Mill in Peterman in mid-January.
Peterman is located in Monroe County, Alabama.
The Cedar Springs plant near Blakely, which makes paper products, will not be affected.
A spokeswoman for the Atlanta-based company blamed the closure on a sluggish economy and a downturn in the housing industry.
The company said displaced workers will not be offered severance packages because they expect to restart the mill in the future.
Georgia-Pacific's paper mills in Brewton and Pennington will also not be affected.