Norske Skog has sold its Ettamogah plant to Australian paper giant Visy.
The sale will see Norske Skog's workforce of about 180 made redundant by the start of next year.
In a meeting on Thursday, workers were told the mill would cease production by December before assets were handed over to Visy in the first quarter of 2020.
One employee, who's worked at the mill for 15 years, said Norske Skog was "a great company to work for but, sadly, good things have to come to an end".
"They handled it as best they could," he said.
"Hopefully I can get a job with Visy."
Norske Skog's Regional President Eric Luck said the workers would receive full entitlements.
"Today's decision will also be sad news for many people. However, it reflects the structural change in the newsprint industry and the need to address declining domestic sales, lower prices and increased reliance on exports into volatile Asian markets," he said.
"I take this opportunity to acknowledge and thank everyone who has worked at and for the mill over the last 38 years. I also acknowledge that today's decision comes after what has been a very tough year for the mill and its employees, families and friends. I therefore want to again acknowledge and thank everyone for their efforts during this time.
"A positive aspect in today's announcement is Visy's plans to undertake multiple feasibility studies on potential future uses on the site in the shorter and longer term. This provides the opportunity for future jobs in the region."
A worker, who did not attend Thursday's announcement, said there had been speculation about the fate of the mill over recent weeks.
"There's been secret squirrel stuff for a month and half with management not saying anything," she said.
The employee said she would have appreciated a more upfront approach.
"It's disappointing they didn't go through the process with the workers," she said.
Workers received packages containing redundancy details at Thursday's meeting.
One man, who's worked at the mill for almost two decades, said it was "a sad day, but not totally unexpected".
"It's a tough environment we're operating in, newsprint all over the world is doing it tough," he said.
"Then you throw in factors like energy and gas costs and the fact that there are guys out here on $40 to $50 an hour and people in Asia doing the same thing for less than a quarter of that.
"We just can't compete."
The Albury mill has been running for nearly 40 years, having been officially opened on August 28, 1981, under Australian Newsprint Mills.
In 1997 the mill changed hands and began operating under Fletcher Challenge before selling to Norske Skog in 2000.
At its height the mill employed about 250 employees, but currently employs closer to 183, according to their website.
In 2001, Norske Skog - who has seven mills across five companies - undertook a $55 million upgrade of the plant and four years later in 2004 the company invested another $130 million and erected a 30 metre pulp tower.
In June 2015, the company produced their seventh-million tonne of paper.
The plant produces around 274,000 tonnes of newsprint annually.
IN OTHER NEWS:
In May 2018, SafeWork NSW and Victoria Police investigated after two employees, Ben Pascall and Lyndon Quinlivan, died after a gas explosion. Another worker was seriously injured and in a critical condition and 14 more were transported to hospital.
Another plant worked died, off-site, from unrelated causes in the weeks following the accident.
Production was ceased and the plant was mostly closed, running on a skeleton staff for two and a half weeks after the incident.
A year after the accident a commemorative service was held at Norkse Skog and a memorial fountain dedicated to the men was unveiled.