More demand for product may save Kimberly mill

10/09/2008 12:00 - 782 Views

KIMBERLY — A spike in orders, a drastic price drop in energyand raw materials, and stricter enforcement of laws to help U.S. companies compete fairlyagainst overseas manufacturers.

 

If these three things happened now, it would keep theNewPage mill in Kimberly open, a company spokeswoman said Thursday.

 

"Customer orders are down 12 percent for the first halfof the year," said Shannon Semmerling, spokeswoman for NewPage. "Thereality is to keep the mill open, we would need customer orders to increase. Wealso need stronger enforcement of the trade decision and we need energy and rawmaterial costs to come down."

 

Drop in product demand and rising material costs are amongthe chief reasons Miamisburg, Ohio-based NewPage decided to close the Kimberlymill. The plant employed as many as 600 earlier this year, but those numbersare down to 475, with production set to end Monday.

 

Elected officials including Sen. Herb Kohl, D-Wis., haverequested the International Trade Commission to reopen the anti-dumping casefiled by NewPage last year. NewPage has said that competition from cheaperimports has made it difficult for U.S. firms to compete.

 

The ITC had ruled against NewPage, despite a Department ofCommerce report that concluded many Asian producers of coated freesheet paperwere illegally dumping it on the U.S. market at less than fairmarket value and that their governments were illegally subsidizing their paperproducers.

 

Kohl, in a statement issued Thursday, said he spoke toNewPage chief executive officer Mark Suwyn, and told him his office would offerassistance to find ways to help the company lower its energy costs in Kimberly.Kohl added that the Wisconsin congressionaldelegation is requesting a meeting with John Snow, chairman of Cerebrus, whichowns NewPage, to discuss the decision to close the Kimberly mill and explorealternatives.

 

The eleventh-hour assistance is appreciated by Andy Nirchl,president of Local 2-9 of the United Steel Workers, which represents a majorityof the remaining workers at the Kimberly mill. The union is planning a rally at3 p.m. Saturday across fromthe mill.

 

"The product dumping has caused us the greatestharm," Nirchl said. "It's a big issue and (Rep. Steve) Kagen(D-Appleton) has been helping us with it as well."

 

If imports can be priced fairly and the rules betterenforced, Nirchl believes it would make a stronger case to keep the Kimberlymill open.

 

"I don't think there would be any qualms aboutrestarting the mill," he said.

 

Larry Avila: 920-993-1000, ext. 292,or lavila@postcrescent.com

 

By Larry Avila • Post-Crescentbusiness editor • September5, 2008

 

Source: www.postcrescent.com
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