Milwaukee-based regional publisher Journal Communications said that the closure of Dixie Web, which employed 100 staff, was due to a "longstanding weakness in that business" as well as
the storms that devastated the area last month.
Steven Smith, Journal Communications chairman and chief executive, said that "uncertainty about current and future prospects due to the impact of the hurricane drove our decision".
The company estimated losses would total 900,000, in addition to shutdown costs of 1.6m-1.9m.
Kit and production from the plant will be moved to facilities within the group.
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