NewPage Corp. will shutter parts of paper operations in three states and cut nearly 700 jobs as part of its acquisition of Stora Enso North America, the company said Wednesday.
NewPage spokeswoman Amber Garwood said the workers whose positions are eliminated by the closings could wind up taking other jobs at NewPage mills or leaving through retirement.
The $2.5 billion acquisition, which closed in December, will include the shuttering of portions of operations in Rumford, Maine; Niagara and Kimberly, Wis.; and Chillicothe:
A paper machine in Rumford will shut down by the end of February, affecting 60 employees.
The pulp mill and two paper machines in Niagra will close by the end of April, affecting 319 workers.
A paper machine in Kimberly will close by the end of May, affecting 125 workers.
The converting facility at Chillicothe will close by the end of November after some of the converting machines and volume are transferred to existing facilities in Luke, Md., and Wisconsin Rapids, Wis. About 160 workers in Chillicothe will be affected.
The moves will increase 2008 North American production between 3 percent and 8 percent compared with the combined production in 2007, said NewPage Chairman and Chief Executive Officer Mark Suwyn.
"These restructuring decisions will create the platform essential to become one company, remain competitive in the marketplace, serve our customers more efficiently and reach $265 million of synergies we have committed to achieve," Suwyn said.
Garwood said some corporate positions from Stora Enso's Wisconsin headquarters will be consolidated into the Miami Township headquarters. It's too early to know how that will impact the some 250 current workers at the Miami Township headquarters, she said.
"In the long run, we're going to have an increase of positions in Dayton," she said.
NewPage is majority owned by New York private equity group Cerberus Capital Management.
The new organization will have approximately $4.3 billion in net sales for the twelve months ended Sept. 30, 2007.
NewPage makes paper used for corporate collateral, high-end advertising brochures, magazines, catalogs, books, coupons, inserts, packaging applications and direct mail advertising.
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