Sad Note for Ripon

Disappointment rules as paper mill prepares to shut down, ax 100 jobs

By Marijke Rowland
mrowland@modbee.com

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RIPON — When the paper plant opened 48 years ago, the city celebrated with three days of festivities.

But when Neenah Paper Inc. announced last week it would close the mill, there were no parades — just resigned disappointment. The company will shutter the mill and lay off its 100 employees within the next two months.

"The company has made it a priority to take care of the employees that are here and have sent key human resources employees out from (corporate headquarters in) Georgia to help assist with the transition period," said mill manager Jim Klues-ener. "I've contacted as many business leaders and associates as I know in hopes of placing these employees in good jobs."

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Kluesener said the company filed a Worker Adjustment and Retraining Notification Act notice with the state Employment Development Department on Thursday. Workers were notified the same day of the impending closure.

He said the plant will stop manufacturing by the end of this month or in early June. Employees will be paid through the WARN-required, 60-day period and given severance packages.

"We certainly hate to see it go," said Elden "Red" Nutt, a Ripon city councilman and Chamber of Commerce board president.

"Most of these people are local people, they live in town, have families, kids in school. They've worked there for years. A lot of other people know people that work there. It's all over town."

On Monday, the Alpharetta, Ga.-based fine paper product manufacturer reported $700,000 in first-quarter losses to stockholders, with net sales of $134.1 million.

Neenah Paper officials at the corporate offices did not return calls from The Bee.

Kluesener said the paper industry, particularly paper for communication, has been in decline for several years.

The mill produced high-end paper for writing, copying and other uses. Its products include greeting cards, business cards, specialty writing paper and advertising paper.

"Recessionary periods are hard on everyone. And they are harder on this particular section of the paper industry," said John O'Donnell, Neenah fine paper division president. "People look for other, paperless means of communication."

The plant's departure not only means lost jobs, but vacant commercial space. The 300,030-square-foot plant and its accompanying 157 acres have been put up for sale.

Over the years, the plant has changed owners several times. The project was started by Michigan-based Lee Paper Co. in 1958. Lee merged with Simpson Paper Co. that year and continued construction of the then-$8 million plant.

In the fall of 1961, the mill opened as the Simpson-Lee Paper Co. The city threw a three-day celebration with parades, cake-baking contests and a halftime show during a high school football game.

The plant operated as the Simpson Paper Plant for 35 years until it was sold to Wisconsin-based Fox River Paper Co. in 1996. Then in 2007, Neenah Paper Inc. took over.

The closure was preceded by a series of cutbacks in the past year. The plant scaled back its run schedule from every week to every other week in November. In January, it offered buyouts to employees.

A number of its workers have been there for decades, one more than 40 years.

"There have been rumors circulating for months about whether it would close or stay afloat," said Ripon Mayor Chuck Winn.

"I know through the years the company has really been actively involved in community donations. It will be sad to see them go. They've been really good community partners."

Winn said he was not sure how large the city's loss in property tax would be from the closure.

Kluesener said because of consolidation at Neenah's other plants, it was unlikely that any of the Ripon workers would be relocated within the company.

"We have been a cornerstone to the town of Ripon," he said. "This is a great place to work, and that is due in large part to the attitude of the employees and cooperation of the Ripon community. It's going to be difficult to find a job this rewarding."

Bee staff writer Marijke Rowland can be reached at mrowland@modbee.com or 578-2284.