Appleton to Implement Supply Agreement With Domtar
APPLETON, Wis., March 9, 2012 /PRNewswire/ -- Appleton will begin to implement the 15-year supply agreement with Domtar previously announced on February 23. Under terms of that agreement, Domtar will supply Appleton with most of the uncoated base paper the Company needs to produce its thermal, carbonless, and other specialty paper products.
The agreement was considered tentative at the time of the announcement. Since the agreement will result in a reduction of approximately 330 jobs at Appleton's West Carrollton mill, Appleton's management team wanted to conduct discussions with leaders of Local 266 of the United Steelworkers regarding the reasons the Company chose to pursue the agreement before implementing it. Those discussions have been completed.
On March 12, Company officials will start negotiations with the mill's union leaders to address transition issues and terms of separation packages for union employees who will lose their jobs as a result of the permanent shutdown of papermaking operations at the mill. Affected salaried employees have been notified that they will receive benefits in accordance with the Company's severance pay plan for salaried employees.
"We intend to help all affected West Carrollton mill employees make a smooth transition and we look forward to completing the effects bargaining process in a productive and timely fashion," said Kerry Arent, Appleton's vice president of human resources.
The Company expects job reductions at the mill to begin in May. Approximately 100 employees will be retained to continue to operate the mill's thermal paper coating facility. Carbonless coating currently conducted at West Carrollton will be shifted to the Company's converting plant in Appleton, Wis., and result in an increase of approximately 50 jobs at that facility. Employment at Appleton's mill in Roaring Spring, Pa., will be unaffected by the agreement.
Appleton creates product solutions through its development and use of coating formulations, coating applications and Encapsys® microencapsulation technology. The Company produces thermal, carbonless and security papers and Encapsys products. Appleton, headquartered in Appleton, Wisconsin, has manufacturing operations in Wisconsin, Ohio and Pennsylvania, employs approximately 1,800 people and is 100 percent employee-owned. For more information, visit www.appletonideas.com.
Notice regarding forward-looking statements
This news release contains forward-looking statements. The words "will," "may," "should," "believes," "anticipates," "intends," "estimates," "expects," "projects," "plans," "seeks" or similar expressions are intended to identify forward-looking statements. All statements in this news release, other than statements of historical fact, are forward-looking statements. All forward-looking statements speak only as of the date on which they are made. They rely on a number of assumptions concerning future events and are subject to a number of risks and uncertainties, many of which are outside Appleton's control that could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the factors listed under "Risk Factors" in the annual report on Form 10-K and in subsequent quarterly reports filed with the Securities and Exchange Commission. Many of these factors are beyond Appleton's ability to control or predict. Appleton disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.