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GP plant in Gaylord

Started by Corley5, March 07, 2006, 08:08:01 AM

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Corley5

"GEORGIA PACIFIC PLANT CLOSES
A local community's second largest employer announced it's shutting down.
Georgia Pacific managers told their employees at the Gaylord plant
yesterday morning. The plant started manufacturing particle board for
industrial furniture and mobile homes in 1965. The plant's regional
manager says they've been fighting financial struggles and competition
overseas for the past two years. Yesterday, they told their 210 employees
the plant is closing for good. Georgia Pacific locked its doors, but will
continue limited production today with about 50 employees. All employees
will get full pay for the next two months. The plant will close
permanently in April. The closing could cause other companies in the are
to lay off their workers as well. Timberline Logging sold chipped wood to
Georgia Pacific. The sales were more than half of the company's revenue.
Now about 12 Timberline workers could lose their jobs. Economic experts
predict Georgia Pacific's closure will have a powerful trickle-down
effect. The Gaylord Chamber Director says it will be difficult to find
another employer as big as Georgia Pacific to fill the void. He hopes to
attract a number of smaller companies."  From 9&10 News

This has been on the wind for a while.  One BIG chip producer sold his equipment last summer and went to round wood.  My grandpa worked as union carpenter on the plant when it was built.  I know many people who work there or have worked there.  This is pretty bad.  The trickle down will be bad.  The story I got was the plant had been down for a couple weeks for supposed maintenance.  When the crew showed up at 6:30 AM yesterday to go back to work the place was locked up.
Burnt Gunpowder is the Smell Of Freedom

DanG

That's a real shame, Greg.  I hate to hear of plant closings anywhere.  Too bad they couldn't see their way clear to convert all or part of the plant to some other product. :'(

On a more positive note, GP has just opened a huge OSB plant down here.  It will have an even larger economic impact, but in the other direction.  They're taking advantage of millions of acres of pine plantations that were planted for the paper companies that no longer exist
"I don't feel like an old man.  I feel like a young man who has something wrong with him."  Dick Cavett
"Beat not thy sword into a plowshare, rather beat the sword of thine enemy into a plowshare."

Jeff

One of our first members of the Forestry forum was the procurement forester for the plant. I heard from Frank Laurence last week. Looks like he will be going out on his own as a consulting forester now. He checked in with me real quick to let me know he would be checking in with me.  :D Maybe Frank will have more time in the future to get on the forum now that he does not have that huge work load upon him from G.P.  I'll get after him about that.
Just call me the midget doctor.
Forestry Forum Founder and Chief Cook and Bottle Washer.

Commercial circle sawmill sawyer in a past life for 25yrs.
Ezekiel 22:30

Corley5

When the guys showed up for work the time clocks were covered, the doors leading into the plant were locked and after everyone was there security showed them out :( :(  There are rumors going that this is GP's way of forcing the union out ???  It's apparently one of few if not the only plant with union representation ???  Lots of rumors.  The place has changed hands several times over the years.  It started out as U.S. Plywood and many of us still refer to it as "Plywood".  Champion owned it for a spell, Weryhauser had their turn and there was at least one other owner in there I think.  Gaylord doesn't look the same without the huge steam plume coming from the plant's stacks  :( :(  The smell wasn't at all obnoxious either :)
Burnt Gunpowder is the Smell Of Freedom

Ron Scott

In addition to the financial impact on the 200 workers at the plant and the many indepentent loggers, the mill closing will also have a significant impact on wildlife according to the local Michigan DNR.

The plants timber consumption was a "dominant force" in maintaining healthy forests and wildlife habitat. The DNR points out that everything from deer to elk, Kirtland's warblers and ruffed grouse benefitted from the timber harvesting for the plant.
~Ron

SwampDonkey

GP closed up shop this month in Northern Maine also. They bought treelength hardwood. Our low grade hardwood isn't much worth cutting now, just stovewood. We're back to 20 years ago, except for the veneer and sawlogs, which are mostly from high grades these days.  ::)
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

Woodhog

Too bad...

This is just a sign of the times in Forestry..

Our price for logs is taking another drop this week.

I really feel the whole industry is on the verge of collapse around this area, even with all this type of thing going on they are printing articles showing 500 and 600,000 dollar machines being bought and put in the woods. What a fools paradise..

SwampDonkey

Funny thing is, it doesn't have to be if nations with the largest consumption of paper products bare down on countries with lack labour and environmental laws. It's these same nations however that take advantage of this and set up shop in foreign less developed countries.  ::) As far as I can see, forestry certification means squat unless all nations are involved.
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

Corley5

Some chips are going to the Soo, Ont and others are going to Newberry.  I can't see how with the cost of fule it can profitable to haul that far.  I was talking to another guy hauling round wood and he was hauling all the to Quinisec and getting 120 something a cord rather than to the railhead in Rexton for 83 something.  He was deadheading back.  I quess it's pencilling for him but I don't see how ???  I've heard that GP is taking bids for dismantling and moving the equipment out of the plant.  One big timber harvester in Gaylord has not only laid off it's chipper crew but already sold the equipment too :(  There's of a possible wood fired generating plant taking GPs place and some local entrepreneurs are looking into wood pellet production as another possibility
Burnt Gunpowder is the Smell Of Freedom

SwampDonkey

We need to get into wood fired generation here also, but our government is always ass backwards.
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

Black_Bear

Here is the story on GP that Swampdonkey was referring to, from the March 16th Bangor Daily:


Georgia-Pacific Corp. is shutting down its Old Town pulp mill, the company announced Thursday. But Gov. John Baldacci, who was on hand for the Old Town announcement, said his administration and G-P would make a joint effort to sell the mill, which employs some 400 workers.

The company said it will cease pulp and tissue manufacturing and associated tissue shipping operations at the mill immediately. G-P will keep the mill in working order for 60 days while a buyer is sought.

Also affected: four woodchip mills that supply raw material to Old Town. They are in Costigan, Milo, Portage and Houlton. Combined, they employ about 30 people. G-P said those operations would cease Thursday.


G-P, owned by Koch Industries Inc, said the Old Town decision is the first pulp mill it has closed since G-P was acquired by Koch in December.

Ted Sapoznik, a G-P vice president, said in a statement that the Atlanta-based company is working with the state to find a new buyer. "While the Old Town mill may not fit into the future plans for [G-P], we have been working to make a transition. We are anticipating finding a buyer who is ready to work with us and expand this business in Old Town."

According to many experts here at UMaine, the mill needs to specialize (find a niche market) in order to be competitive. The mill is in excellent condition and has a biomass boiler plant that is less than 2 years old. Some company should buy the mill unless Koch decides that they will benefit greater from not selling it.

sprucebunny

Many people are hoping that a wood fired generating plant and wood pellet production will utilize the land and facilities at the pulp mill that Fraser is closing in Berlin, NH.

Pretty scary to see so many pulp mills closing at once.  :(


MS193, MS192 and an 026  Weeding and Thinning. Gilbert Champion sawmill

chet

Corley,
I can't imagine haulin' from down by you all the way over to this end of da U.P. Thats 550 miles he is putting on that truck, round trip for one load.  :o
I am a true TREE HUGGER, if I didnt I would fall out!  chet the RETIRED arborist

Corley5

I can't either  :o  and he's not the only one doing it.
Burnt Gunpowder is the Smell Of Freedom

Dana

He must be making money on what he is hauling on the return, the way out is only paying for the trip. ???
Grass-fed beef farmer, part time sawyer

Corley5

He's usually coming back empty.  I don't get it but he's been doing it for awhile so he must be making something
Burnt Gunpowder is the Smell Of Freedom

chet

Maybe they just enjoy da scenic ride on ruff ole US2 at 50- 55 MILES PER HOUR.  ::)
I am a true TREE HUGGER, if I didnt I would fall out!  chet the RETIRED arborist

Ron Scott

Some of the larger producers down here have been running chips from here south of Cadillac all the way to Escanaba and return empty. They have been doing that for the past 2-3 years. You will see Bazuin and Mumma trucks running that stretch of US-2 pretty regularly.

They must have some good contracts with Mead there.
~Ron

Corley5

As published in the Gaylord Herald Times

"BAGLEY TWP. - A wood pellet manufacturer with a ready European market announced Monday plans to purchase the idled Georgia-Pacific (G-P) Gaylord particleboard plant and create approximately 100 new jobs.

President and CEO Chris Delusky of Upper40, a sustainable wood products company, who was in Gaylord Monday, said the transaction is expected to be completed by mid-December and he hopes to re-open the facility and begin production of wood pellet fuel by the end of this year. Initially, he said, there will be an immediate need for 40 employees to get the plant up and running. Within the next year he envisions expanding the workforce to approximately 100 with hopes of further growth in the near future.

G-P spokesperson Melody Root confirmed Tuesday it had entered into an agreement with Upper40 for the sale of the Gaylord plant. "We're very happy to hear that there will be new jobs coming to Gaylord."

"Finally, something positive is happening in Otsego County," was Bagley Township supervisor Bill Giles reaction Tuesday to the impending sale of the G-P plant. "After so much recent economic bad news this is a step in the right direction. Hopefully it will have a trickle-down effect for the chip suppliers and other businesses that relied on Georgia-Pacific and help our economy here."

"We are going to get up and running quickly," said Delusky. "From what we can project, we have the customers in Europe and expect to begin shipping 60-90 days after startup," said the CEO, who has been with the family-owned Detroit hardwood mill-working company Public Lumber Company since 1994. This is the first business venture for Upper40, which Delusky indicated is being backed by GE Commercial Finance. He declined to comment on the purchase price of the G-P facility on Dickerson Road.

"We're excited about this venture and look forward to locating in Gaylord," he remarked. "This will be a good thing for the community. It took a long time to negotiate a deal with Georgia-Pacific but we now have a definite agreement," Delusky said. The transaction will include purchase of all 914 acres of the plant, including the N-4 facility which had been closed prior to G-P's decision to cease all operations in Gaylord on March 6.

According to Delusky, pellet production would take place in the area where particleboard was produced and Upper40 would be looking for someone to use the N-4 facility.

Otsego County Economic Alliance Executive Director Jeff Ratcliffe - who Delusky said "has done a great job of answering our questions and providing assistance in helping us to make the decision to locate here" - said the Alliance had been working with Delusky to bring the wood pellet operation to Gaylord.

"What this means for Gaylord is we're going to have a large employer back in this plant now that the property has been purchased and will make it a more accessible property for other potential businesses," Ratcliffe said Monday. "Chris has a strong business sense. They have been one of the prospects we have been working with from almost the beginning."

Delusky said earlier in the year his company had been in the process of planning a wood pellet plant in Manistee on the west side of the state, until he made an inquiry into purchasing some of the equipment at the closed plant in Gaylord. "As we walked through the plant a light bulb went on in my mind," Delusky said of Upper40's decision to locate in here rather than Manistee. "We could see that it would meet our need to produce pellets. The kilns and dryers and other equipment were already there."

Further investigation into the G-P plant convinced Delusky it would be a good fit for his new company. "The way the plant was set up and the care placed on maintenance of the facility after it had closed, all fit well into our business model."

Delusky said the supply network already in place for wood chips as previously established between local chip suppliers and G-P, as well as "an inexhaustible and highly sustainable product," were major factors in choosing Gaylord.

Delusky also cited tax abatement incentives through the recent designation by Bagley Township of the G-P plant as an economic development zone for potential businesses locating there, as another factor in his choice.

"Truck and rail transport were also a huge reason for locating here," he said. "We have a great place here to move our product and get it to the ports we need to use in shipping to our customers in Europe."

As to who will actually be working at the new wood chip plant, Delusky said that has not been determined but he expects to hold a meeting for former G-P employees to tell them of Upper40's plan and what their needs will be.

"We don't expect we will need as many production workers. It's not like particleboard production, which tends to be more labor intensive than making wood pellets," he explained.

Delusky said he would be looking for workers skilled in areas such as maintenance, milling operators and office and management staff. He added that any prospective employees would need to register through Michigan Works! at 111 Michigan Ave., stressing the company would not be accepting applications at the G-P plant. "We expect that sometime after Thanksgiving we will be ramping up and looking for those workers we will need to get this operation up and running.""

This was the news a while back.  On the local news at six tonight it was reported that the deal has fallen through.  Apparently GP and the buyer couldn't agree on something in the negotiations and that's it.  It's off  :( :(  I heard of one company that had bought a couple new trucks in preparation for the reopening ::)
Burnt Gunpowder is the Smell Of Freedom

farmerdoug

Kinda jumped the gun didn't they. ::) :(

Farmerdoug
Doug
Truck Farmer/Greenhouse grower
2001 LT40HDD42 Super with Command Control and AccuSet, 42 hp Kubota diesel
Fargo, MI

SwampDonkey

Corley, We went through that roller coaster here with Nackawic and Tembec/Berla Group. The two companies merged into AV Nackawic and has been operating a year now.
"No amount of belief makes something a fact." James Randi

1 Thessalonians 5:21

2020 Polaris Ranger 570 to forward firewood, Husqvarna 555 XT Pro, Stihl FS560 clearing saw and continuously thinning my ground, on the side. Grow them trees. (((o)))

Dana

Here is more potential gun jumping. ??? The t.v. news this morning said the city of Gaylord and a Michigan Representative - Elsinheimer I think are working with a potential ethanol producer to take over the plant. Anybody want to buy some seed corn?
Grass-fed beef farmer, part time sawyer

Corley5

If it happens I'd like it to be a cellulosic ethanol plant.  Switch grass would be king on this farm  ;D :)
Burnt Gunpowder is the Smell Of Freedom

farmerdoug

Or a cellulosic methonal plant but either one would be a step in the right direction.  I think cellulose is the feedstock for our future fuel needs.

Farmerdoug
Doug
Truck Farmer/Greenhouse grower
2001 LT40HDD42 Super with Command Control and AccuSet, 42 hp Kubota diesel
Fargo, MI

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