DEERFIELD, Ill., May 12 /PRNewswire/ -- Fort James Corporation (NYSE: FJ)
announced today that it will close its food wrap plant in Menasha, Wisconsin,
and its plastic cutlery plant in Houston, Texas, and transfer most of the
manufacturing operations to other Fort James facilities.
This decision was made only after a careful and thorough study of the
company's current and future manufacturing and distribution needs for food
wrap and plastic cutlery. These plant closings are part of the company's
ongoing efforts to increase manufacturing efficiency and reduce costs.
The Menasha Canal plant, which manufactures food wrap and employs
approximately 115 people, will close on or about July 11, 1998. Food wrap
production will be consolidated at the company's facility in Parchment,
Michigan. Some of the production equipment from Menasha will be moved to
Parchment, and as a result approximately 60 jobs will be added there. This
move will consolidate all Fort James food wrap production into a single modern
facility. The Parchment facility opened in 1991, while the Canal Street plant
is 93 years old. The company plans to sell the building once the plant is
closed.
The Houston plant manufactures plastic cutlery using the freefall method,
as well as plastic straws and stirrers, and employs approximately 230 people.
This closure is primarily the result of the company's decision to discontinue
the production of freefall polypropylene and to focus on manufacturing the
company's DIXIE brand dense pack cutlery. Manufacturing of the remaining
products will be consolidated at Fort James' cutlery facilities in Los
Angeles, California, and Leominster, Massachusetts. More than 100 jobs will be
created at the Los Angeles facility and approximately 12 in Leominster. Fort
James currently leases the building that houses the Houston plant.
All employees will receive a severance package in accordance with company
policy or existing labor contracts. These severance packages are generally
designed to provide employees with salary and benefit continuation and a
variety of job search assistance and training options.
Fort James will work with appropriate local officials, as well as state
and federal agencies, to identify job opportunities and public assistance that
may be available.
The closing of the two plants is expected to reduce the company's
operating costs. The resulting savings are part of the overall savings
anticipated from the merger of James River and Fort Howard that occurred on
August 13, 1997. Costs associated with these closings were previously accrued
in 1997 as part of the merger-related restructuring charge.
Fort James is a leading international consumer products company, serving
consumers both at home and away-from-home with bathroom and facial tissue,
paper towels, napkins, and cups, plates, cutlery and food wrap products. The
company's popular brands includes QUILTED NORTHERN, BRAWNY, DIXIE, VANITY
FAIR, MARDI GRAS, GREEN FOREST, SOFT 'N GENTLE and SO-DRI in North America and
LOTUS, TENDERLY, COLHOGAR and KITTENSOFT in Europe. Fort James also produces
folding cartons for packaging food and pharmaceuticals, and communications
papers such as printing, publishing and office copy paper. With annual sales
of $7.3 billion, the company has approximately 28,000 employees and more than
60 manufacturing facilities in the United States and 15 other countries around
the world.
Copies of today's news release, along with additional information on Fort
James, is available, at no charge, by calling 888-526-3711. You also may
access the company's Web site at Internet address http://www.fortjames.com.
SOURCE Fort James Corporation
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 457350
Related links:
http://www.fortjames.com
CONTACT:
Financial: Celeste Gunter, 804-649-4307, or
Media: Richard B. Elder, 804-343-2309, both of Fort James
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