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NewPage Corp. plans temporary shutdown

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Friday, August 15, 2008

RUMFORD - Up to 500 NewPage production workers and an unknown number of salaried employees may be without work for two weeks beginning late next month.

Tony Lyons, spokesman for NewPage Corp.'s Rumford paper mill, said Thursday afternoon that all three paper machines, the pulp mill, and the pulp dryer will be shut down from Sept. 22 through Oct. 6.

"We're not sure who will be impacted. There will be some skeleton crew," he said, adding that employees who will be affected will be known late next week.

The shut down is part of a previously scheduled rebuild of the mill's co-generation turbine. That project, expected to run from Sept. 7 through Oct. 9, had been planned for at least a year, said Lyons.

Regular maintenance and work on the mill's power boiler system will be conducted while the turbine is down, he added.

Because the mill produces about 90 percent of its electricity, and that won't be produced during the rebuild, mill administration decided not to produce the nearly 22,000 tons of paper that would normally be manufactured during the six-week maintenance period. He declined to provide a value for that paper.

He said mill customers will not be impacted by the hiatus in production because of existing inventory. The mill will continue to accept wood deliveries during the shut down.

The high cost of electricity, together with the difficulty of acquiring wood and its high cost, contributed to the decision.

Lyons said 500 people are in production, 200 are salaried, and about 300 are in maintenance. Maintenance employees will stay on the job during the down time.

"We continue to see a very volatile coated paper market," said Lyons, adding that orders are down at NewPage as well as at other mills. "The company is doing what it can do to balance supply and demand."

The mills have also been dealing with higher fuel costs.

Lyons said no permanent lay-offs are expected once the turbine rebuild is completed.

Quarterly earnings changed significantly between the end of the first and second quarters for the Miamisburg, Ohio-based company. It owns nine mills nationwide.

The recent closure of a NewPage-owned paper mill in Kimberly, Wis., may beneficially affect the production of the remaining mills, Lyons said.

CLICK HERE To Show/Hide Discussion Thread - (7 Comments)
Comments
Posted By:Ph.D.iva at August 15, 2008 8:59 AM (Suggest Removal)
Let this mark the beginning of the end for New Page in Rumford. Fellow employees not to worry though! Evergreen Resort and Casino to the rescue. The former mill property will make an excellent site for the new casino. Paychecks will be a quarter of what they are now, BUT AT LEAST we will still have a job, right? Notice, if you will, maintenance will not be affected. Good job Local 900! Remember 1986???! Maintenance employees were not affected then, either. That's right, the maintenance department still controls the union, as it did in 1986. New Page spokesmen also need to get a job with the union, because they are just as full of sh1t. "High cost of electricity" they say when the mill produces 90% of its own? Mr. Lyons is such a human tape recorder for the company its sickening. Just tell the truth, Tony. Oh, that's right, the production worker's can't handle the truth. The truth they'll be ferrying drinks around a casino hall in the near future, or carrying bags up to a customers room as a bellhop. MANY workers, especially the women, can't handle their mill jobs now, what will they do when they really have to work for a living? And just like 1986, the parking lot of OFCU is going to be a massive used car lot and junkyard, with many exceptional buys. Is Evergreen Resort and Casino going to pay a wage where one can keep all of their toys? ANSWER: start selling NOW if you are a production worker, for LOCAL 900 cares even less about you now as they did in 1986, and we all remember what happened then..........

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Posted By:Susan at August 15, 2008 10:17 AM (Suggest Removal)
What the hell do you mean the women can't handle their jobs now? who the hell are you kidding. somenoe who writes such stupied things sounds alot like seth carey.

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Posted By:joyce at August 15, 2008 11:51 AM (Suggest Removal)
Sounds like Mr. Valdez has many issues. I don't believe for a minute all the women can't handle the jobs. Get a life.

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Posted By:Kelly at August 15, 2008 3:47 PM (Suggest Removal)
ok T - what do they do the rest of the time then?

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Posted By:Kelly at August 15, 2008 3:53 PM (Suggest Removal)
and as for Juan - I don't disagree with alot of your comments but.... there is no reason maintenance is running local 900 - production workers outnumber the maintenance department. It's time they stood up and took their union back! NOW before it's too late - it may already be too late.

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Posted By:Ph.D.iva at August 15, 2008 4:23 PM (Suggest Removal)
Let us not forget the 342 PRODUCTION jobs lost to scabs during an 11 week strike in 1986. If something like this was not enough to make them take the union back, then nothing ever will. Susan and joyce: I wrote "MANY workers, especially the women",and "what will they do when they really have to work for a living". Nothing wrong with that, only calling a spade a spade. Male or female alike. Just ask any male millworker on the street and they'll tell you the women should be home baking cookies, not taking a job from a family man. No better than SCABS. Food Trend or Shop n' Save are ALWAYS hiring..........

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Posted By:Ph.D.iva at August 15, 2008 8:51 PM (Suggest Removal)
We can only wish.

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