Fusion Paperboard to Close Sprague Mill in September

Fusion Paperboard on July 23 filed paperwork with the Connecticut Department of Labor saying it would close its Sprague mill on Sept. 22.

July 29, 2014 - Connecticut-based Fusion Paperboard, which operates a paper mill in Sprague, CT, will close the mill on September 22, according to the Connecticut Department of Labor.

The CT labor department's website shows that Fusion Paperboard on July 23 submitted a Federal WARN Act Notice that indicated 145 workers would be affected on the layoff date of 9/22 — the same date specified on the notice for closure of the plant.

The mill produces 100% recycled, food-grade paperboard, according to Fusion's website.

"Despite recent efforts, the operation can no longer be sustained. We will make every effort to fulfill existing orders and help customers as they transition to alternate suppliers," said Joel Laroche, chief operating officer of Fusion Paperboard in the release that appeared in an article on "The Day" (Connecticut) website.

The article also noted the state's Department of Economic and Community Development would require Fusion Paperboard to repay a $3 million low-interest state loan with a $150,000 penalty.

"DECD includes measures in each business assistance agreement to safeguard the state's investments," DECD spokesman David Treadwell wrote in an email to The Day. "Agreements typically require businesses to maintain operations within the state for no less than 10 years. Failure to meet this provision automatically requires the recipient to immediately repay the financial assistance plus a penalty."

Go to the full article at www.theday.com.

SOURCE: The Day (Connecticut)