NewPage to Close Wisconsin Mill

Paper producer cites low demand and high costs; 475 employees affected.

By Jason Fell
08/06/2008

Ohio-based NewPage Corporation has announced plans to shut down its mill in Kimberly, Wisconsin by the end of August. About 475 employees will be affected by the mill’s closing.

The Kimberly mill currently operates two paper machines, NewPage says, and produces 500,000 tons of coated freesheet paper annually. NewPage attributes the closing to a decrease in demand and an increase in costs.

“We continue to work to offset the negative influences by raising prices and driving productivity programs harder,” chairman and CEO Mark A. Suwyn said in a statement. “We can readily meet our customers’ needs with our remaining facilities and at the same time improve our cost advantage versus our peers.”

Last May, NewPage ceased operations of a third paper machine at the Kimberly mill. One hundred and twenty-five employees were let go as a result.