Boise Inc. to Idle One Newsprint Machine Indefinitely
April 27 2009 - 3:29PM
PR Newswire (US)
BOISE, Idaho, April 27 /PRNewswire-FirstCall/ -- Boise Inc.
(NYSE:BZ) a leading manufacturer of packaging products and papers,
today announced it has indefinitely idled its D-2 newsprint machine
at its mill in DeRidder, Louisiana. The D-2 machine has been idled
since February 9. The company will continue to operate the D-3
newsprint machine and the D-1 linerboard machine at the DeRidder
mill. The company began selling newsprint on March 1 of this year,
transitioning away from a marketing agreement with AbitibiBowater.
While idling capacity, the company has made a commitment to its
newsprint business through the formation of an experienced and
dedicated sales team led by Sean Terry. Boise Inc. newsprint
products have a well-established presence with major newsprint
publishers in the southern U.S., Mexico, and Central and South
America. "This was a difficult decision because we know it affects
our employees, who have performed well and safely," said Alexander
Toeldte, President and Chief Executive Officer of Boise Inc. "The
drastic decline in newsprint demand is an external factor that none
of us can control. Indefinitely idling the machine minimizes our
costs while preserving our future options." The machine has an
annual production capacity of 186,000 tons of newsprint. Idling
capacity allows the company to reduce operating and capital costs
in light of unprecedented declines in demand for newsprint while
preserving the asset for potential future use. The D-2 machine is
being preserved, enabling the company to restart it within a short
period of time should the need arise. The company may also pursue
options to convert the machine to packaging products at a later
date. The indefinite idling will result in a loss of ten salaried
jobs at the DeRidder mill. Eligible salaried employees will be
offered severance packages, as well as outplacement assistance. The
95 hourly employees affected will remain on layoff status. Closure
agreement negotiations will be scheduled with the United
Steelworkers Locals 13-0725 and 1226 to determine the impacts for
union employees. The company has filed a notice of its intent to
indefinitely idle the machine under the WARN Act and will pay union
employees in lieu of notice. The company expects to employ about
450 people at the mill with D-2 idle. About Boise Inc.
Headquartered in Boise, Idaho, Boise Inc. (NYSE:BZ) manufactures
packaging products and papers including corrugated containers,
containerboard, label and release and flexible packaging papers,
imaging papers for the office and home, printing and converting
papers, newsprint, and market pulp. Our entire team of
approximately 4,350 employees is committed to delivering excellent
value while managing our businesses to sustain environmental
resources for future generations. Visit our website at
http://www.boiseinc.com/. Forward-Looking Statements This press
release may contain forward-looking statements. These statements
reflect management's current views and are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in these statements. There are
factors, some of which are beyond our control, that could affect
our ability to achieve our intended business and financial
objectives. Some of these factors include changes in business and
general economic conditions, unforeseen technical issues that could
increase our costs or impact our ability to restart the machine,
and the outcome of our closure agreement negotiations with our
union employees. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events, or otherwise. Other factors that could cause or
contribute to actual results differing materially from such
forward-looking statements are discussed in detail in the company's
filings with the Securities and Exchange Commission. DATASOURCE:
Boise Inc. CONTACT: media, Virginia Aulin, +1-208-384-7837, or
investor relations, Jason Bowman, +1-208-384-7456, both of Boise
Inc. Web Site: http://www.boiseinc.com/
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