International Paper announced Thursday it would close its paper mill in Franklin by spring of next year, putting 1,100 people out of work.
The Memphis, Tenn.-based company said the closure was necessary because the demand for uncoated free-sheet paper had declined during the global recession.
“We recognize these are very difficult decisions affecting our employees, their families and the communities surrounding these mills,“ International Paper Chairman and CEO John Faraci said in a statement. “We have concluded that we have excess capacity in our North American paper and packaging businesses, and these decisions will better match our supply with our expected customer demand.“
The company also announced it would close its containerboard mills in Pineville, La., and Albany, Ore., cutting another 500 jobs.
Gov. Timothy M. Kaine said he has commissioned the Virginia Employment Commission to create an Economic Crisis Strike Force to help displaced workers at the plant.
“International Paper’s intended closing of its Franklin facility as part of planned actions nationwide is a deep blow to the community and the commonwealth,” Kaine said in a statement. “This plant has long served as an economic asset for the area and its phased closing is most distressing. My heart goes out to the affected workers and their families, as well as all others who will be affected by this closure.”
The company said salaried employees will be offered severance packages and outplacement assistance. It is working with union officials on severance benefits for hourly workers.
It is a huge shame to see the Paper Mill go, I pass by it about once every three months and stop in Franklin for shopping and a meal. A wonderful town, a town that does not deserve this to happen to them.
International Paper’s board of directors are far, far removed from the dedicated, hard working folks in their mills. Every one of their employees, from the Janitor, to the log crane operator tried to make their operation the best.
The investors will probably not even know where Franklin is, they probably have no concept of the pain that the town is going through, or of the hardship families that every family in the county will soon face. They will notice a uptick in the share price and be happy. It was after all, a business decision.
Well, how about selling the plant, giving the employees a chance. Using some of Obama’a handout money to keep it going. When I hear about how much it costs to save the job of one GM worker, and then see that we are throwing out eleven hundred folks at IP, I wonder where are priorities are. If the Government gave the workers a loan to run the mill, it would be cheaper than finding them new jobs. If the workers ran the plant they would probably run it better than IP ever did, some folks have over 41 year experience, does that not count for anything?
I don’t see Deeds or McConnell petitioning the Obama Administration about this. I don’t see them even taking steps to have VA save the plant or train the management in marketing of uncoated freesheet on the world market. I see a $100 a week.
When were politicians and investors so far removed from the people. When in our history, do we see people tossed aside like this.
--Roger Kirby of savannah
Oct. 23, 2009 at 08:16 PM