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Home About Us B2B Club Breaking News Contact Donate Events / Programs Feedback Ideas Incubator Industry Clusters Links / Resources Progess Funds Progress Teams Public Art / Murals Publications		Breaking News August 21, 2004 By Colin Atagi, Daily Tribune Staff Stora Enso North America is on track to see a profit by next year after a massive program to cut costs and upgrade operations. The company announced last year it would eliminate about 490 jobs in central Wisconsin by mid-2005, reducing its regional work force from about 2,638 employees to 2,148. Mills affected by the job cuts include sites in Wisconsin Rapids, Biron, Stevens Point, Kimberly and Whiting. The company has lost money every year since Stora Enso Oyj bought Consolidated Papers in 2000. In 2002, the company had an operating loss of $155 million, and in 2003 it lost $184 million. Rebuilds of two fine paper machines at the Wisconsin Rapids and Kimberly mills contributed $40 million to the company's $130 million operating loss in the first half of 2004. But there's reason for optimism, said Tim Laatsch, senior vice president of communications for Stora Enso North America. The rebuilt machines, part of a "profit enhancement program," are expected to increase revenues and production in the long term. The program focuses on cost reductions, asset improvements and changes in the product mix. Company officials hope to have a profit by mid-2005, and the program's goal is to produce annual earnings of $145 million, according to company officials. "We're continuing to proceed with a plan that will put us in a good position by mid-2005," Laatsch said. "Unfortunately, there was a reduction to approximately 5,000 employees needed to get there." The entire North American division, which includes facilities in Wisconsin, Minnesota and Canada, was expected to be reduced to about 5,000 employees from 6,050 by next year. Many of those jobs have been eliminated in the past year, but it hasn't been determined which mills in the North American Division will have future layoffs to reach the goal, Laatsch said. The job reductions were necessary because of factors including a poor economy, increased international competition and high energy costs, Laatsch said. Other necessary steps included initiating a hiring freeze, travel restrictions and wage freezes for hourly and salaried employees. "Our objective here isn't to lay people off - it's to become profitable, to be competitive in the industry and to look toward a long-term gain instead of a short-term gain," he said. Meanwhile, the company continues to provide job-seeking assistance for former employees. The company's Career Center has been available since late 2000 to assist central Wisconsin workers who have lost their jobs, said Carol Davis, director of employee communications for Stora Enso North America. Since late 2000, 178 management employees and 62 hourly employees have used the center and found new jobs. The center has active files on 84 former employees who might still be looking for work, she said. About 18 members of the Office and Professional Employees International Union Local 95 are on a Stora Enso layoff list that allows them to work on an as-needed basis, said Wayne Pankratz, business agent for the union. "We've discussed different options and alternatives to achieve what the union set out to achieve," Pankratz said. "In the mean time, we've had a number of members who have been placed on layoff. Because we didn't sign off on a severance package, our members have recall rights, and the company has been good at calling them to fill temporary assignments, such as temporary leaves, maternity leaves, resignations and retirements. "I think, from those we've talked to, they're very concerned. They have very good skills. They certainly didn't have performance difficulties. The supervisors were pleased with them, and they're distressed, sitting here right now and wanting to come back." You can reach Colin Atagi at 422-6728 or at catagi@wisconsinrapidstribune.com.
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