Sappi plant hit by nationwide cuts

Sappi Fine Paper North America’s Skowhegan plant has been impacted by the company’s 5% nationwide reduction of its workforce, but exact details are unknown.

The Morning Sentinel reported 110 salaried and hourly positions are being cut across the company’s six North America locations — 80 of which were unfilled and 30 of which were filled by active workers.

Company officials did not comment on the exact impact at the Skowhegan plant, but an employee with direct knowledge of the cuts told the newspaper there were no outright layoffs, but instead, an elimination of vacant positions, a few shift reductions and a shifting of some positions.

Sappi said in a prepared statement that making the cuts was “an extremely difficult decision,” but that it’s “necessary to reduce cost, remain competitive and support our ability to deliver against Sappi’s long-term strategic initiatives while continuing to meet the needs of our customers.”

“We remain committed to our workforce and the community at all of our facilities,” it said, “and will continue to selectively hire and provide training and scholarship assistance to new talent seeking a rewarding career in the paper industry.”

In a message to employees, Sappi North America President and CEO Mark Gardner said he’s “personally very aware of the impact this decision has on our affected employees,” and that discussions will take place with union officials regarding the impact on hourly workers.

Duane Lugdon, a staff representative for the United Steelworkers, said in a statement that the nationwide cuts are “ further evidence of a slowing market for paper in our nation,” noting how paper is being used less in some industries, like publishing, as they adapt to a growing online audience.

“Sappi has a research and development structure that we think will allow it to be a survivor,” he said, “and our union’s members continue to work diligently with Sappi to find unique paths forward to the future.”

Jennifer Miller, Sappi North America’s executive vice president for the coated business and the chief sustainability officer, said in a recent interview with Mainebiz that educating customers about smart consumption of its products is important for business.

“In the world of 'big data' there are very good ways to make sure the mail that goes out,” she said, “and ends up in a consumer's mailbox is intentional, invited, welcome and, yes, effective as a medium that cuts through the clutter in a way that's very different than electronic media.”