PORT ANGELES — In response to a slumping economy, Nippon Paper Industries USA will extend its regular biennial maintenance closure from five to 16 days, with 75 to 80 of the mill’s 220 employees furloughed during the temporary closure.
The Port Angeles mill, which makes paper used for telephone books and other custom paper, will be closed from April 27 to May 12.
“The economic slowdown has negatively affected the uncoated mechanical grade market, and the shutdown is necessary to balance production with inventory,” mill manager Harold Norlund said Wednesday.
Salaried workers remain
The 60 salaried workers will remain at work, as will the 50 mechanics, who are paid hourly.
Of the remaining 110 hourly workers, 75 to 80 will be laid off during the hiatus, with the temporary layoffs made by seniority, Norlund said.
The rest will be a skeleton crew.
“Upwards of 10 [percent] to 20 percent could be working,” Norlund said.
Typically, Nippon hires contracted workers to maintain and repair the electrical, air and water systems at the Marine Drive plant.
“We normally do it fast and furious,” Norlund said.
But this year, Nippon crews will handle much of the maintenance work themselves, with contractors hired as needed to finish the maintenance work by May 12.
Discussions to extend the maintenance outage began about a week ago, Norlund said, and a firm strategy for the closure has not been finalized.
“It’s fair to say we have not got this planned out yet,” he said.
The mill will lose about 5,000 tons of production during the curtailment, which translates into nearly $4 million in product, Norlund said.
Plant officials are working with suppliers to ensure that last-minute orders are finished, Norlund said.
Nippon will stop its paper production on the night of April 26 and not accept wood chips until the morning of May 11, Norlund said.
Those who work will not accrue overtime, Norlund said.
Those who don’t will be allowed to use vacation, banked vacation from other years or — if the union representing the 160 hourly workers, the Association of Western Pulp and Paper Workers, approves — vacation time borrowed from later in 2009, Norlund said.
Norlund said the paper industry generally slows in the first half of the year.
“We’re all hoping for a better second half of the year,” he said.
“But that’s a hope.”
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.
