Menasha Corporation announced today that Menasha Packaging Company, its manufacturer of high quality corrugated boxes, and graphical consumer packaging and promotional displays, will sell or close its mill operation in Otsego, Mich. Menasha Packaging determined earlier this year that it can reduce costs and make its converting operations more competitive by contracting for paper rather than producing it.
“In the past, we could run a ‘one mill operation’ to efficiently produce the paper we need for our corrugated box and display converting operations,” said Arthur W. Huge, Menasha Corporation president and CEO. “But the paper making market and corrugated industry have changed. To remain profitable, we have to cease operations and close the mill if a new owner cannot be found.”
Several companies have expressed interest in the Otsego Mill. Menasha Packaging hasn’t received any firm offers, however, and the outcome of the sale process is still unclear.
Following an extensive review of Menasha Packaging’s overall strategy and operating costs, the company notified employees earlier this year that it was exploring options to sell the Otsego Mill. The company also told employees that it would close the mill if a buyer could not be found. In compliance with rules and regulations affecting employees and communities impacted by plant closures, Menasha Packaging has issued an official notification to Michigan state and local community officials that the mill might cease operations as of August 9, 2005.
The Otsego Mill has 200 full-time management and hourly employees.
Should the mill be closed, Menasha Packaging will assist employees that have opportunities for employment at other locations. All other employees will receive career transition assistance.