IP close PA plant

[Ron Wenrich]

International Paper is closing their Erie, PA plant as well as a concentration yard in Utica, NY.  The closure will result in the loss of 760 jobs.  The plant is 103 years old, and was originally part of Hammermill.

The Utica yard is the last remaining market for round hardwood pulp in the Central NY region.  

Officials blame the problem on the declining price of pulp.  Prices have dropped 50% in the past 6-8 months.

[L. Wakefield]

   Just what I was talking about re co-op operations. Owner/operators have a vested interest in maintaining their jobs and keeping their woodlands productive. That admittedly does not create a market for paper if it's not there. :-/ But- we all do use TP. Leaves and bark just aren't the same.. :D lw

[Kevin]

I hear they`re using owls in some old growth areas on the west coast because they can`t cut the trees to make tp.

[CHARLIE]

It's sad to see that many jobs being lost. It seems to be the way of big corporations today though and I wonder where all these people being laid off are going. You hear of Motorola, Kodak, IBM, etc laying off thousands and then you don't hear anymore. I'm wondering what all these people are doing. I know some just retired, but with the volume being let go, I'd guess the vast majority have to find another job. I don't read of any large corporations hiring thousands either. So, what are these people doing? Are they now flipping burgers for $5 an hour without benefits?

There is a papermill in Duluth, Minnesota that, from what I hear, specializes in making high quality paper. Well, I've never in my life seen as many logs before in one place in my life. Must be millions of logs stacked up. They load the logs into a semi-trailor which hauls it to the plant. The semi backs up on some kind of hydrolic ramp and then the ramp lifts up in the front until the truck is at about 45 degree angle and the logs just slide off down into the plant....probably to be mulched.  Since Eggsander has his yacht up there, I'm guessing he probably knows what I'm talking about.

[Ron Wenrich]

Most people collect unemployment for a while.  Blue collar workers will go wherever they can get the work.  But, they will take a pay cut, especially if they are union.

White collar may be able to transfer there knowledge to another type of industry.  All labor will have to wait until jobs open up, which is several months away.

760 jobs lost will effect another 3500 jobs.  With lower income, there will be less trips to the mall, burger joint, bar, or vacation spots.  Its the trickle down that's a real killer..

[Gordon]

Talk about hard times coming, it's not getting any better by the looks of it.

I copied this off the web:

 
Abitibi-Consolidated Inc - to Temporarily Shutdown Sawmills  
Market News Publishing  November 21, 2001
 
Toronto, Ontario, Nov 21, 2001 (Market News Publishing via COMTEX) -- Abitibi-Consolidated announced that it will shutdown its sawmills and related forestry operations for an average four-week period between the end of November and the middle of January 2002.
The temporary shutdown will affect almost 5,000 people working at 18 Abitibi-Consolidated facilities in Quebec (Saguenay, Charlevoix, Lac Saint-Jean, Mauricie, Cote Nord and Abitibi regions) and British Columbia. Together, the Company will have withdrawn almost 400 million board feet of lumber production from the market in 2001, or about 20% of Abitibi-Consolidated's total output.

"Unfortunately, we have to trim production again as a result of difficult market conditions aggravated by countervailing and antidumping duties that have been imposed by the United States and total about 33% of the selling price," stated Louis-Marie Bouchard, Senior Vice-President, Woodlands and Sawmills. "Early next year, we will re-evaluate the situation, taking into account any developments affecting lumber exports to the United States."

Abitibi-Consolidated is a global leader in newsprint, uncoated groundwood papers and lumber with ownership interests in 27 paper mills in Canada, the U.S., the U.K. and Asia (including its 50% interest in Pan Asia Paper Co.), and in 22 sawmills, two remanufacturing facilities, a market pulp mill and 10 recycling centres. The Company employs 18,000 people and supplies products in nearly 100 countries.

CONTACT: TEL: (514) 394-3601 Denis Leclerc, Manager, Public Affairs

EMAIL: denis_leclerc@abicon.com

MarketbyFax(tm) - To get the NEWS as it happens, call (604) 689-3041.

 Gordon
 

[L. Wakefield]

   So why do I ALWAYS get the gut feeling that multi-nationals are the bad guys? Is it from watching too many Steven Segal movies? : Somebody tell me some GOOD things about multi-national conglomerates, cuz I'm just not seeing it.

   Conversely, if there's nothing good about it, how can local ownership compete- or thrive?

   And while we're at it I- with no bux to back this up- think it's a crying shame that Bethlehem Steel should go under. Steel is one of my favorite things..why should it be a given that one goes bankrupt trying to produce it? >:(

   Guess it's my day for dumb questions.

[Ron Wenrich]

My Dad put 35 years in with Bethlehem Steel.  I have a cousin that still works there.  BS was a multi-national company, I believe.

They went under by paying big bucks for retirement, and paying dividends instead of investing in new equipment.  My Dad worked with equipment older than him.  It never changed, and that was when they were running good.

Multi-nationals have the reputation of extracting money from one area and putting into another.  Local businesses will recycle it more times at home, until the government gets it all in taxes.  But, local businesses will not necessarily treat the environment or their workers any better than a foreigner.  

[Kevin]

I can`t speak for U.S. steel companies folding but the Liberal government here is responsible for allowing steel dumping from oversea markets, they *DanG near killed the steel industry here in Canada.
The Prime Minister just gave himself a 40% pay increase.
I think you should have to pass a test before being allowed to vote in this country!

[Ron Scott]

More International Paper Shut Downs

By the end of January, IP's containerboard mill in Oswego, New York will be shut down, eliminating 102 jobs and 100,000 tons of linerboard, medium and kraft papers capacity.

All of these tons will be transferred to other locations within the Industrial Packaging mill system.

[Ron Scott]

Stora Enso to Sell Forestland

Stora Enso, a leading global pulp and paper company, plans to sell more than 1.8 million acres of forest land in the United States and Finland to concentrate on its core businesses.

The forest land, valued at $450 million, will be sold in two seperate transactions. In the US, the company plans to sell 320,000 acres of forest in Wisconsin, Michigan, and Minnesota.

[L. Wakefield]

   Ya know, I'm on several newsgroups where there is a lot of badmouthing of the US, the World Bank, and the IMF in terms of exploitation of 3rd world countries. But I have to say I get a sick feeling when I read numbers like what you just wrote. 320,000 acres. It doesn't make me feel particularly secure. A lot of people seem to feel we are the big bad guys. But with something like this we are just as much the chicken waiting to be plucked.    lw

[Texas Ranger]

I may have posted this before, Louisiana Pacific is selling 900,000 acres and 6 mills in Louisiana, Texas, and Oklahoma.  It will leave two large mill owners in east Texas, unless an outside white knight shows up.

[Ron Wenrich]

Let's see.  The Forest Service sells timber for below cost and the forest industry tries to unload their timberlands, which is a long term asset.  Then you wonder why private landowners don't want to manage their timber.   :

[Rod]

$450,000,000/320,000 Ac=$1406 an Ac,must be timber on that there land i'd say... :

[Rod]

YEA,I just though of something!!!! why don't we pool are money and buy up all this timber land...What do you think of that idea??? 8)

[Jeff]

Yup I been saving for this chance. I almost got the bottom of my glass jug covered. :D

[Ron Scott]

Plum Creek to Purchase Stora Enso Forestlands

Plum Creek Timber Company, Inc. recently announced it would acquire 309,000 acres of forestland in Wisconsin and Michigan from Stora Enso Corporation. The Company signed a definitive agreement to purchase the timberlands for $142 million. The purchase consists of 306,000 acres of timberland in northern Wisconsin and 3,000 acres in the Upper Peninsula of Michigan.

The forestlands contain a diversified mix of timber types and age profiles including mature mixed hardwood stands, mixed natural conifer stands, and hardwood and conifer plantations.

[OneWithWood]

DanG!  I wish I had a few hundred mill.  I'd say Plum Creek got a fantastic deal!