NewPage plans more downtime

By Joel Dresang
Milwaukee Journal Sentinel

The paper company that's closing mills in Niagara and Kimberly because of falling demand and rising costs said today that it plans further production downtime.

Miamisburg, Ohio-based NewPage Corp. said in a conference call with securities analysts that it expects to take enough downtime in the third quarter to reduce production by about 41,000 tons. That’s more than double the 18,000 tons of downtime the company says it took in the second quarter.

The company blames economic uncertainty for prompting reluctance among retailers advertising in catalogs and magazines that use the coated printing paper NewPage makes.

Before the call, NewPage reported a net loss of $21 million for the second quarter on sales of nearly $1.1 billion. The company more than doubled its size in December with the acquisition of Stora Enso North America, which was based in Wisconsin Rapids.

Part of Cerberus Capital Management, NewPage has about 2,300 employees in Wisconsin Rapids, Biron, Stevens Point and Whiting. Last month, it closed a mill in Niagara, with more than 300 employees. It also is shutting down its mill in Kimberly, which earlier this year had about 600 employees.