CALHOUN, Tenn. (AP) — The Calhoun paper mill's newsprint machine is being shut down, and its new owner is laying off 150 employees.

The Chattanooga Times Free Press ( ) reports Resolute Forest Products says part of the reason is falling demand for newsprint, as well as the machine's high operating costs.

Resolute merged with the former AbitibiBowater Inc. in 2007 and this week acquired the rest of the Calhoun mill it didn't already own.

The mill will continue to operate specialty paper machines and the pulp dryer. It currently employs 610.

Newsprint from the plant supplied newspapers across the South. An Augusta, Ga., plant will now provide it.

Resolute said affected workers will be given severance, according to the labor agreement or corporate policy for salaried employees.

Resolute is headquartered in Montreal.