MEMPHIS, Tenn. (AP) -- International Paper said Friday that it would indefinitely shut down a pulp mill operation in Bastrop, La., due to a continuing decline in demand and global economic weakness.

The closure affects about 550 employees at the mill, which is currently taking downtime because of a lack of pulp orders.

The mill closure, which begun immediately, is expected to reduce the company's annual pulp production capacity by about 450,000 tons.

"The hard-working employees at the Louisiana mill have not only consistently performed and made excellent quality products for years, but have also been great examples of excellence in safety and employee engagement," Senior Vice President Wayne Brafford said in a statement.

Last week the company said it would shut down one of its paper production machines at its mill in Franklin, Va., and take downtime out of its uncoated freesheet paper mills during the fourth quarter. The move affected 50 workers.

Shares of International Paper rose 3 cents to $10.39 in midday trading.