Reuters 12dec00
This morning on behalf of the Chlorine Free Products Association, I sent our Best Wishes and Sincerest Condolences to all of the employees within Georgia Pacific affected by this current downturn.
In April 2000 the Kalamazoo mill contacted the CFPA requesting certification for PCF {Processed Chlorine Free}. The mill management was willing and supportive, as they received requests for the CFPA PCF Certification Mark from customers, but corporate refused to support. We believe that had this plant been able to join the CFPA and completed the certification process it could of saved this mill.
As one of our many partners, who's organization purchases over 7 million tons of similar grades has put it, "The CFPA’s certification program is something all serious environmental papermakers need to identify and differentiate their grades. By certifying claims, you eliminate 95% of the unsubstantiated noise made by other papermakers in the market.
I am proud that NCMA has aligned itself with a group of elite papermakers and have joined the CFPA to bring accountability to environmental claims," said Garen Post, President, NCMA. "The TCF/PCF certification marks will identify and encourage others who are looking for a quality paper that is good for the environment."
We hope that in the future the CFPA will be able to persuade GP's senior management to recognize the benefits that certification and a chlorine free process bring to market share and financial development.
Archie Beaton
cfpa1@attglobal.net
(Story)
ATLANTA - Paper products giant Georgia-Pacific Corp., citing the current weak market, said on Tuesday it will close a 133-year-old mill in Michigan and shut down a machine at another plant, laying off 285 workers the week before Christmas.
The company, which has about 85,000 employees worldwide since buying rival Ft. James Corp. last month, said in a statement it is permanently closing its Kalamazoo, Mich., unit along with an already idled paper machine at its Nekoosa, Wis., operation.
"These were not easy decisions to make," said David Paterson, senior vice president. "However, sound business strategy dictates that we constantly review our operations to be sure they are cost-competitive and creating value for our shareholders.
"Unfortunately, changing market conditions, along with the size and age of the Kalamazoo facilities, mean that we can no longer support their continued operation."
About 285 employees will be laid off at Kalamazoo, effective Dec. 22, but they will be paid through February, a G-P spokesman said.
There will be no employee impact at Nekoosa, where the operations' four operating machines will continue to operate. A fifth machine was shut down nearly three years ago and all employees affected at that time took other positions in the mill, Georgia-Pacific said.
The 100-acre Kalamazoo mill includes a de-inked pulp plant and two paper machines that produce about 130,000 tons per year of recycled bond, offset and matte-coated papers. The mill was founded in 1867 and was acquired by Georgia-Pacific in 1967.
Last week, the paper maker closed a mill in Bellingham, Wash., and temporarily laid off nearly 800 workers until a power shortage gripping the West Coast eases.
In general, the paper products industry is going through a lean period,
with brokerage houses lowering estimates for the sector based on weak prices for market pulp and coated papers.
Merrill Lynch cut its 2001 earnings estimates for several companies last month, including Georgia-Pacific to $3.50 a share, down from $6.05 a share.
Georgia-Pacific shares closed up 1/4 to $26-9/16 on the New York Stock Exchange on Tuesday, compared with a 52-week range of $19-5/16 to $51-15/16.
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