Print
More News

Paper Mill Plans Conversion, Eventual Workforce Reductions

By Jenny Callison, posted Mar 31, 2015
Big changes are coming to International Paper’s Riegelwood Mill, the company announced Tuesday.

A company investment of $135 million will convert the plant to fluff and softwood pulp production only and will reduce the plant workforce over time, officials said in a news release. The conversion, tentatively planned to begin in the first half of 2016, will reduce the number of mill machines from three to two but will add 400,000 tons of production capacity, with the flexibility to shift between fluff and softwood pulp, officials said.

The plant currently employs 740 people, and company officials do not anticipate job reductions during 2015, plant spokeswoman Kimberly Clewis said Tuesday. There will, however, be a reduction once the conversion takes place, although the company doesn’t have any firm numbers at this point, she said, adding, “We still have to work through the details. We do have a union and will work with the union to minimize impact."

Mill manager Floyd Whitmire, quoted in the release, also said the company hoped to minimize the effect of the workforce downsizing.

“We will have fewer jobs as a result of shutting down one of the machines. However, based on what we know today, there will be no impact to anyone’s job at the Riegelwood Mill this year as a result of the planned conversion,” Whitmire said in the release. “We also are hopeful that we can manage most, if not all, job reductions by utilizing current vacancies, retirements and normal attrition. We have a lot of talent at Riegelwood and are committed to taking steps to reduce the impact of these changes on employees.”

Fluff pulp, with its absorbent properties, is used in diapers and adult incontinence products as well as some feminine care products, Clewis said. Softwood pulp is used in soft paper products such as facial tissues and paper towels, she explained, adding that the market for both fluff pulp is growing worldwide.

“Demand is forecast to grow 3 to 4 percent a year, especially in Asia,” she said, adding that as more of the world’s population has greater discretionary income, there is increasing demand for products that use the pulp.

Currently the plant – located in southeastern Columbus County – operates one pulp machine and two machines that produce paperboard, which finds its way into such consumer products as book and magazine covers, cardstock, paper plates and folding cartons, Clewis said. One of the paperboard machines will be eliminated, and the second will be converted to pulp production.

“Converting the Riegelwood Mill to run 100 percent softwood pulp products best positions us for the future,” Whitmire said in the release.

This is International Paper’s second major capital investment in the Riegelwood Mill in the past two years, including a $40 million investment to optimize the mill’s wood yard operations, the release stated.

“International Paper has continued to invest to improve the long-term competitiveness of the Riegelwood Mill,” Whitmire said. “Today’s announcement is reflective of the company’s commitment and confidence in our Riegelwood Mill team to serve one of the company’s most attractive and growing global markets.”
Ico insights

INSIGHTS

SPONSORS' CONTENT
2022052 75 142344351

Bridging Futures: The Case for Toll Funding in Wilmington’s Cape Fear Memorial Bridge Revamp

Natalie English - Wilmington Chamber of Commerce
Mcwhorter 0005

So, You Have an Idea for an Amazing, Life-Changing Company... Now What?

Heather McWhorter - UNCW Center for Innovation and Entrepreneurship
Web awstaffpic2020 1 132245438

The 2024 Luncheon for Literacy featuring Special Guest Jason Mott

Alesha Edison Westbrook - Cape Fear Literacy Council

Trending News

Beverage Manufacturer To Occupy Former Tru Colors Facility In Wilmington

Audrey Elsberry - May 6, 2024

Wilmington Leaders To Consider Skyline Center Lease, Debt Payment

Emma Dill - May 6, 2024

In The Current Issue

CEA Professional Services Winner: Transforming Work Environments

Since starting her company in 2023, Khalilah Olokunola of ReEngineering HR said she has been building fair-chance hiring strategies and rede...


CEA Health Care Winner: Tech Helps Fight Fatal Infection

The intersection of medicine and technology sits at the core of Morris Nguyen's biotech startup, Predicate Healthcare Performance Group (HPG...


Chambers Share 2024 Picks For CEAs

As part of the Coastal Entrepreneur Awards program, area chambers of commerce share their top business and organization picks....

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season