Everybody in the city of 11,771 probably knows somebody who has worked at Boxboard, said City Manager Sonny Lewis. And in a small town like Franklin, losing six jobs, let alone 81 jobs, is going to hurt, Lewis said.
“When people have worked there and retired there and raised their kids and you got to school with them ... it’s just heartbreaking to see a company that’s been so faithful to the community shut its doors,” he said.
Franklin Boxboard, 50 E. Sixth St., is expected to permanently close Aug. 28, according to a notice The Newark Group Inc. sent June 28 to Mayor Denny Centers.
The Newark Group, a global producer of recycled paperboard and paperboard products, purchased the Franklin mill in 1984, according to David Ascher, vice president, general counsel & secretary of Newark Group.
Newark Group also is closing a plant in New Jersey. The company said these closures reflect its strategy to focus on rightsizing its assets to best serve its customers.
“It’s no secret that market conditions have changed and we, like every organization, need to evolve to not only serve but lead the industry,” said Philip Jones, president and chief executive of Newark Group, in a statement.
Lewis moved to Franklin in 1967 and said at the time, Franklin Boxboard was Stone Container. Franklin was a paper mill community with its location along the Great Miami River, he said.
United Steelworkers represents 63 of the employees, said Tim Bray, a local union representative, who said a three-year agreement was just reached in November. There’s a Tuesday membership meeting to go over questions, he said.
Bray also contacted the company for effects bargaining, trying to work on an agreement on issues such as health insurance and severance. Although workers will qualify for unemployment, Bray said it doesn’t compare to their current wages, ranging $19 to $21.50 an hour.
In the age when people and businesses are shifting to electronic communication, the paper industry has suffered layoffs and a lot of change in ownership, said Bray, who worked at Champion Paper Co. in Hamilton before it later became SMART Papers.
“It’s certainly not what it used to be,” Bray said.
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