Weyerhaeuser Company officials announced Thursday morning they will not rebuild the Bowling Green North packaging facility.
The factory shut down in December, after an ice storm caused its roof to collapse. All 26 workers managed to escape uninjured.
A company spokesman says the damage sustained in the storm would cost far too much to repair.
"It was very tough. We made the decision very, very carefully. We considered all aspects of whether we could build the old facility of how we could possibly manage production and new facility."
Officials say workers are eligible for severance pay and continuation of health care benefits.
Around 40 of the 120 affected employees will transfer to the Weyerhaeuser South plant.