NEENAH, WI (WTAQ) – As a Neenah paper mill is set to close, local officials aren’t letting it go without a fight. The closure of Clearwater Paper Corporation’s Neenah facility on North Lake Street would send nearly 300 employees into a job search.
“They seem pretty firm in their decision…It does seem like this is a business decision on the economics side,” said Neenah Mayor Dean Kaufert. “The market place for the types of things that they’re making the profit margin wasn’t there anymore.”
The company told him a technology update to bring the facility up to current standard and to make it more economical to run just wasn’t in the cards from a financial standpoint. He points out that due to the pandemic and people stocking up on tissue supplies, the market has become a bit softer than usual.
But Kaufert says he’s reached out to the company and state to find ways to keep the production plant open.
“[With] state economic development assistance maybe they could find a way to retrofit the machines or something to try and keep them open but I have not heard back from the governor’s office at this point,” Kaufert said. “I asked them to look at if there was a way to incentivize if these jobs stay the state, [if they] would find a way to incentivize these jobs. Or for every dollar that the company put in, the state would help match that.”
While he admits the state simply doesn’t have the ability to save every business that runs into trouble, he’s hopeful that a little push could go a long way.
“We’re not going to be bailing out every company. It’s just not feasible. But maybe there’s a way where we can have some financial assistance in ways to make them better, to give them the technology upgrades that they need to modernize the plant, and be a partner with them to save these jobs,” Kaufert told WTAQ News.
The union has also been negotiating with the company, and Kaufert says they may need to make wage reduction concessions to stay.
“They don’t want to go backwards, but yet we want to save their jobs. We want to make sure that good paying jobs are there for a long time, but I’m not overly optimistic,” Kaufert said.
But even if the decision sticks, Kaufert is optimistic that those workers won’t be out of work for very long.
“If there is any silver lining, it’s the fact that the surrounding area has a lot of paper mills and other tissue companies who seem to be doing quite well. They have a lot of job openings and are having difficulty hiring people right now,” Kaufert said. “So there are going to be jobs for these folks. The problem is that they’re going to take a step back, more than likely, in the wage department.”
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