Date: Fri 15-May-1998

Publication: Bee

Author: KAAREN

Quick Words:

Union-Camp-closing

Full Text:

Union Camp To Close Newtown Plant

BY KAAREN VALENTA

Union Camp Corporation announced Wednesday that it will close and liquidate

the assets of its container plant on Edmond Road in Newtown because of

"unfavorable economic and market conditions."

The plant, which employees 119 persons, manufactures corrugated packaging,

commonly known as cardboard boxes, and graphic displays such as those used in

stores to promote products.

"We regret very much having to make this decision because of the impact it

could have on our employees," said Tom Lambrix, senior vice president of

corporate communications and public affairs for Union Camp at its world

headquarters in Wayne, N.J.

Mr Lambrix said the corporation would prefer to sell the plant as an ongoing

business rather than close it, but the intent is to get out of the market in

Connecticut. He declined to give a specific deadline and said the plant will

continue to operate until it is closed or sold.

A letter sent by Clark Perry, Union Camp's director of human

resources/converting, to First Selectman Herb Rosenthal said the company

"anticipates that a group of affected employees will be permanently separated

from employment with the company during a 14-day period commencing on or about

July 11. ...However, various factors may still affect the timing of any

employment separations."

Some of the employees who will be affected by the July 11 date are members of

United Paper Work Union Local 902, Mr Perry said.

Mr Rosenthal and Community Development Director Elizabeth Stocker were not

available for comment by the Thursday morning deadline for this week's edition

of The Bee.

Union Camp operates 25 other paper plants in the United States including two

in New England: the Newtown plant and a plant in Maine. The Newtown plant and

a plant in Florida both have been targeted for sale because they are not

profitable in their market areas, Mr Lambrix said.

"Over the last several years, the company has made a strong commitment to

improve the operating performance of the [Newtown] facility," he said.

"However, difficult market conditions have kept the plant from generating

acceptable returns."

The 130,000-square-foot plant includes paper cutting and packaging equipment,

a warehouse and shipping operation, and a sales force. The plant is assessed

$71,082 in local real estate taxes and $23,589 in personal property taxes

annually. All taxes have been paid, according to the tax collector's office.

Union Camp is a $5 billion company that manufactures paper, packaging,

chemicals and wood products, and engages in land development. The company

ranks among the nation's 200 largest companies in sales, employs about 19,000

people worldwide, and has operations in more than 40 countries.

A news release from Union Camp said the company "is committed to helping

employees through this period of transition." Mr Lambrix said it was premature

to discuss what steps the company might take while it was still trying to sell

the plant.

He said the company will continue to supply its customers as it pursues

opportunities to sell the plant.

Union Camp owns approximately 1.5 million acres of southeastern US woodlands

that provide the raw material for most of its products. It operates four pulp

and paper mills in the southeast that produce white paper for business forms,

printing, direct mail and other communications uses, plus unbleached kraft

paper and linerboard, primarily for packaging materials.

The 40 packaging plants convert the kraft production into boxes and bags for

consumer and industrial products; produce plastic bags and films, and folding

cartons. Overseas, the company operates corrugated container plants and

chemical plants. Other domestic manufacturing plants include nine building

products operations, four chemical plants, and five flavors and fragrances

facilities.