Groundwood Operations at Wauna Mill to Cease by mid-February 2000
DEERFIELD, Ill., Dec. 16 /PRNewswire/ -- Fort James Corporation
(NYSE: FJ) announced today that it will exit the groundwood business based at
the Wauna mill near Clatskanie, Oregon. This decision was made in part due to
the company's ongoing strategy to focus on its core consumer products
businesses.
(Photo: http://www.newscom.com/cgi-bin/prnh/19990204/CGTH023 )
"As a relatively small producer in a large, global marketplace, Fort James
is unable to compete effectively in groundwood," said Joe Neil, President,
Fort James Communications Papers Business. "Given current and projected
market conditions, it's unlikely that we'll be able to grow this part of our
business in the future."
The groundwood business, which employs approximately 70 people, annually
produces 140,000 tons of groundwood paper for use as advertising supplements
and newsprint. The business includes a whole log chipping operation, a
groundwood pulp mill and a single paper machine. There are no plans to sell
these assets, and they will be shut down.
Company representatives informed employees and customers of this plan
today. Current plans call for all groundwood operations to cease at the Wauna
mill within the next 60 days as dictated by customer need.
Within the next couple of weeks, the company will meet with local union
officials representing hourly employees to discuss details of the exit plan
and impact on individual employees. No employees will be separated from
employment for at least 60 days from the date of this announcement.
"This is an unavoidable business decision," said Neil. "It's always
difficult to close an operation due to the impact on committed employees and
valued customers, but we believe this decision is clearly in the best interest
of the company."
Today's announcement does not affect any other operations at the mill.
Wauna's towel and tissue operation will continue to produce core consumer
products such as bathroom tissue, paper towels and paper napkins. The company
will also continue to produce uncoated free sheet (UFS) printing and writing
communications papers at Wauna and Camas, Washington.
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 include Quilted Northern, Brawny, Dixie, Vanity Fair,
Mardi Gras, Soft 'n Gentle, So-Dri, Eureka! and Eclipse in North America and
Lotus, Colhogar, Tenderly, Embo, and Kittensoft in Europe. The Company has
current annual sales of $6.8 billion and approximately 50 manufacturing
facilities in the U.S., Canada and 10 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 may also
access the company's web site at Internet address http://www.fortjames.com.
SOURCE Fort James Corporation
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Related links:
http://www.fortjames.com
Photo Notes:http://www.newscom.com/cgi-bin/prnh/19990204/CGTH023
or PR Newswire Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Financial, Celeste Gunter, 847-317-5355, or
Media, Mark Lindley, 847-317-5280, or pager, 888-562-8193, both
of Fort James Corporation
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