Coated paper supplier NewPage announced Dec. 8 that it will close its Whiting, WI mill at the end of February 2011. The Whiting mill currently operates two paper machines, which produce approximately 250,000 tons annually of coated paper used by the publishing and printing industry, with a primary focus on mail-order catalog, magazine and retailer end uses.
NewPage said the shutdown will affect about 360 employees, but its customers should not expect any interruptions in service.
Daniel Walsh, vice president for catalog/publication papers at Bradner Smith & Co., says this move will affect all catalogers and publishers, since it shrinks the market further of supply.
“Based on the last few months of manufacturing data for US paper manufacturers, the market appeared to be softening, which generally leads to lowering of prices,” Walsh said. “But with this news of 250,000 tons disappearing from the market, it could keep prices propped-up.
NewPage has had three people serve as president in 2010. Rick Willett resigned in January, and was replaced by E. Thomas Curley, the former president of of the Rolls-Royce Energy business. Curly resigned in June and was replaced by NewPage executive George Martin in August.
The company has also had three different chairmen of the board this year. Mark A. Suwyn tendered his resignation the dame day as Curly, and was replaced by former General Electric, Home Depot and Chrysler CEO Robert Nardelli. The board then named Chan W. Galbato, a senior operating executive of COAC and a director of the Brady Corp., chairman on Aug. 31.