The "Help is Here Express," a big orange bus, was in Franklin …
The Memphis-headquartered International Paper company announced…
Updated: Friday, 23 Oct 2009, 7:12 AM EDT
Published : Thursday, 22 Oct 2009, 10:42 AM EDT
FRANKLIN, Va. - International Paper announced Thursday it will cease operation at its Franklin plant. A total of 1,100 jobs will be lost.
International Paper explained at a news conference that sales are down 20 percent and they've been managing with down time, but the market is simply not returning. "We are simply caught up in a recession," International Paper's Franklin mill manager Jeannine Siembida explained. "It is not a reflection of its employees..... This facility will not make paper again. This is a permanent closure."
It's been a tough year for the plant. In November, 2008, the plant lost 50 jobs and in May of this year the plant lost 155 jobs.
Calling it a devastating loss is likely an understatement as the plant makes up 25 percent of the county's revenue. Thursday's news will have a tremendous economic impact on employees, local governments and schools in Isle of Wight and surrounding counties.
"This is just like a death to our family. It's something that's going to take us a long time to get over," said Isle of Wight County's Board of Supervisors Vice Chair Phillip Bradshaw.
The reality of a global recession hit the economic engine that in various forms has been a part of the Franklin community for more than a century. In the 1800s the Camp family made the lumber industry a thriving opportunity for the region. By 1937, paper became a path to jobs and prosperity. In 1999 the Union Camp Corporation merged with International Paper. Workers who have relied on the mill and it's associated plants have watched the workforce take hits in the last year with temporary shut downs, layoffs, and in the spring of 2009, the closure of the lumber mill. Now, after more than a century of serving as a key employers, all of the plants in the Franklin area will close. Eleven hundred workers will lose their jobs.
Siembida announced the phase out will begin on November 7, when one machine will shut down. She explained a 20 percent decline in demand for IP's products means a smaller workforce is needed.
Siembida says IP executives and union representative will negotiate severance packages for employees. In a few days, the Virginia Employment Commission will send a team to help workers transition to other work or training programs. Gordon Hickey, a representative with the Governor's Office, said the Virginia Employment Commission will be working with employees of the mill in the coming days. Hickey also says the Governor's Office will be setting up an Economic Crisis Strike Force to help the workers.
The tasks ahead in the next days, weeks and months hung over the conference room where Siembida made the announcement. Elected leaders sat silently listening. More than one shed quiet tears. "Our entire economy relies upon the employees and the businesses that is supported by them...they are completely dependent upon this mill," Franklin Mayor Jim Councill told WAVY.com. "My first thought was: 'The people that have families, how are they going to feed their families? How are they going to pay their mortgages.' It just breaks my heart to think of challenges that are going to be faced right now."
Southampton County Administrator, Mike Johnson said, "I don't think we can fathom the impact that closing this mill will have on our community."
An emotional Bradshaw said,"First of all, we're going to have to pray for all these families. All these workers and their families, and everybody in the community." Twenty-five percent of Isle of Wight's revenue comes directly from IP.
Bradshaw shared with WAVY.com that his concern is from the perspective of an elected leader, as well as one who has lived through loss, after working at the plant for nearly 20 years.
"I was laid off with the particle board plant last year. So I went through being unemployed for six or seven months," he explained.
Intertwined with their concern for friends and neighbors, Isle of Wight, Southampton, and Franklin leaders share responsibility for the financial survival of the localities.
"We've got to go to work. We've been working hard to bring other industries to diversify. We knew that needed to be done," Councill said. The communities have already proven an ability to endure and thrive after hardship. In the past decade, after Hurricane Floyd in 1999, the people and the plant rose from the devastation of the Blackwater River's rising banks. It's is still too soon, to see how recovery will come.
At the local Fred's Restaurant on Main Street news of the closing left a bad taste in the mouths of patrons. John Buchanan retired from the mill after more than 30 years. Now his son who followed him to International Paper is losing his job.
"I thought they would be able to work through this bad economy like the company had in the past. The 70's was a bad time when people lost some time but they didn't close the plant down," he said.
Buchanan says his son has a mortgage, a vehicle and a family to support. "When his supervisor called and gave him the news he was at
my house. You know it's just taken a little while for that to soak in. Obviously the thoughts go through your mind, 'what am I going to do now?'"
The downsizing of the mill seven years ago forced Molly Blythe to leave the mill after working as a paper tester and says she's shocked.
"I thought it might become a three-paper machine mill. This is emotional.... I never thought it would close," she said. "There are some couples that the husband and wife both work there with small children. What are we going to do?"
Blythe is left to wonder how could this happen and says it's devastating. However, there is hope.
Siembida acknowledged that as of now, there are no plans to transfer any Franklin area employees to other IP plants. She added though, "We've been through a flood, we've been through other job losses, but this team is resilient." Bradshaw said, "We're going to make some contacts and start planning to see what we can do to help people overcome this and help us overcome it as a community."
International Paper operations in Louisiana, Oregon and Oklahoma will also be shut down.
Below is a statement from Governor Kaine on the plant's closure:
"International Paper's intended closing of its Franklin facility as part of planned actions nationwide is a deep blow to the community and the Commonwealth. This plant has long served as an economic asset for the area and its phased closing is most distressing. My heart goes out to the affected workers and their families, as well as all others who will be affected by this closure. To ease some of the impact of the closing and help support the approximately 1,100 families directly affected by this action, I am instructing the Virginia Employment Commission to work with the appropriate authorities to dispatch an Economic Crisis Strike Force to Franklin in the coming days."
Gubernatorial Candidate Bob McDonnell released the following statement regarding the plant's closure:
"For over a century the paper industry has been an indispensable part of the economy and culture of Franklin City, Suffolk City, Isle of Wight and Southampton counties. With today's closing of the International Paper mill 1100 jobs will be lost and my thoughts are with all the workers and their families. We know that a closing like this will not be easy to recover from. But we also know that the people of this region are resilient and strong, as we witnessed in the recovery from the devastating flooding caused by Hurricane Floyd in 1999. This is a tough moment. But, working together, we will get new jobs created in this area and get the men and women of the International Paper mill back to work, with the good paying jobs that they need and deserve. Creating good jobs all across Virginia has been the focus of our campaign, and it will be my unrelenting focus as governor. Together, we will get our economy turned around and create new jobs in Franklin and all across Virginia."
Democratic nominee for Governor Sen. Creigh Deeds released the following statement:
"The news of the closure of the International Paper Mill in Franklin is a devastating blow to the community. My thoughts are with the many families of those affected by this terrible news. This is a reminder that as Virginia works to emerge from the national economic downturn, we must do so by joining together, reaching across party lines, and by being honest about both the problems we face and the solutions we propose."
Democratic nominee for Lieutenant Governor Jody Wagner released the following statement regarding International Paper's announcement:
"My heart goes out to the workers and their families who learned today that they will find themselves without employment next April. It is a sign of the depth of economic turmoil that a company who has called Virginia home for over a century is forced to close its doors, leaving nearly 1,100 Virginians without work. This is not a time for politics-Democrats and Republicans must come together to move the Commonwealth forward, putting Virginians back to work, and sowing the seeds of economic opportunity for future generations."
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