IP to close part of mill

Published 10:24 am Thursday, November 13, 2008

International Paper yesterday said it will shut down one of its production processes at the Franklin mill, affecting 50 jobs.

The closing, which will begin Nov. 23, will displace 50 of the mill’s 1,200 employees, according to Desmond Stills, the mill’s communications manager.

“We will be working to place these employees in other positions in the paper mill,” Stills said. “The outcome of that work is yet to be determined. It will include bargaining with the unions that represent those employees.”

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The news spread rapidly through the community.

“It seems to be a sign of the times,” said Teresa Beale, executive director of the Franklin-Southampton Area Chamber of Commerce.

Beale said she is sure the community will rally behind workers who are displaced.

“We just need to stick together and help each other get through these hard times,” she said.

John Smolak, president of Franklin Southampton Economic Development, said that from a business standpoint the move was understandable, especially in a difficult economy.

“These types of decisions have to be made and are going to be made,” he said. “I guess what’s a little disheartening is that they put the word ‘permanent’ in front of the word ‘closure.’ Hopefully, these workers will be able to find productive positions within the mill.”

The permanent shutdown of the No. 3 uncoated freesheet paper machine will reduce the company’s annual paper production capacity by approximately 150,000 tons of uncoated freesheet papers, down from its usual annual 900,000 tons.

That particular machine is used to make paper for envelopes, Stills said.

The shutdown was due to a decline in uncoated freesheeted paper demand, company officials said.

“Because of the continuing decline of uncoated freesheet paper demand, we must reduce our capacity and announce this permanent machine shutdown,” said Wayne Brafford, IP’s senior vice president of printing and communications papers. “Our company’s commitment to optimize our mill operations to meet the needs of our customers made this difficult business decision necessary. The additional capacity reductions, as lack of order downtime, reflect the current economic weakness in our markets.

“We also understand this announcement will create uncertainty for employees, their families and the communities affected, especially in the Franklin area. We will do all we can to assist them during the shutdown process and downtime period.”