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Appleton to Reduce Carbonless Capacity, Jobs

Oct. 28, 2008 - Appleton yesterday said that it will eliminate 75 full-time production jobs and 20 temporary positions at its converting plant in Appleton, Wis. The job reductions will include both voluntary and involuntary terminations and will occur between late October and early 2009.

The company said almost half of the reductions will result from the idling of some carbonless production capacity at the Appleton Plant. The remaining reductions are part of a previously announced plan to transfer some production of thermal paper grades from the Appleton Plant to the company’s mill in West Carrollton, Ohio. These reductions in the hourly workforce are in addition to the 20 salaried positions already eliminated at the company during the course of the year.

Appleton employs approximately 2,400 people including 1,200 in the Appleton area.

According to Appleton, its Appleton Plant has historically been the first of the company’s facilities to be affected by changing demand for carbonless paper. Unprecedented economic conditions worldwide have compounded the effects of the ongoing decline in the use of business forms made from carbonless paper.Despite Appleton’s recent success at increasing its share of the world’s carbonless paper market, a sharp decline in demand for the product has created excess production capacity and staffing levels at the Appleton Plant.

David Williams, vice president of operations for Appleton’s Technical Papers Division, said that the company has been able to manage staffing levels by not filling some open job positions and hiring new or temporary production employees with the understanding their continued employment will be affected by volatile market demand. He added that despite those efforts, current market demand will not support the amount of carbonless production capacity the company has available.

Temporary Layoffs at West Carrollton and Roaring Spring Mills
In addition to the reductions at the Appleton Plant, the company will take down operations at its mill in Roaring Spring, Pa., for one to two weeks before the end of the year. Should market conditions deteriorate further, the company said it will idle certain carbonless production equipment at its mill in West Carrollton, Ohio. Those moves will result in temporary layoffs at the two facilities.

SOURCE: Appleton




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