Top Delta employer planning layoffs

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ESCANABA - Low demand for paper is causing paper mills to reduce production, including NewPage Corp., which has a mill in Wells Township, said a local spokesperson.

"We need to remain as flexible as possible for our customers ... and will continue to meet their needs," said Kel Smyth, government and community affairs manager at the Escanaba plant.

Smyth declined to say what the local impact of the reduction could be but did say company-wide production will be curtailed by 150,000 tons in the first three months of the year.

NewPage produces about 4.5 million tons of paper annually at ten mills in Kentucky, Maine, Maryland, Michigan, Minnesota, Wisconsin and Nova Scotia, Canada. The decision represents a 3.3 percent cut in production for NewPage.

"We're not discussing individual downtime," Smyth said this morning, declining to say if layoffs will occur locally.

"All our managers are meeting with their employees over the next few days," he added. The Escanaba mill has about 1,100 employees. "We still have a fine facility here," Smyth said.

NewPage officials from headquarters in Ohio said decisions have not been made regarding where the cutbacks will be made or how many employees will be impacted.

President and Chief Operating Officer Rick Willett in Ohio said market demand and inventory show the downtime is needed to efficiently balance production and consumption.

In November, NewPage officials said production would be cut as the company reported a loss of $61 million for the third quarter of 2008. The company closed two plants in Wisconsin in June and September.

Smyth did offer one reason why the paper market is down. He said smaller-sized catalogs and magazines are being produced, resulting in a decreased demand for paper. Most of NewPage's competition is experiencing similar market trends, he added.

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Jenny Lancour, (906) 786-2021, ext. 143, jlancour@dailypress.net