BAILEYVILLE – An official of the new owner of the former Georgia-Pacific Corp. pulp and paper mill took time Thursday to visit with members of the Town Council, saying the Canadian owner is a large company with a small-business philosophy.
The visit by William L. George, communications and government relations vice president, was the first meeting between the town and a representative of its largest employer since Domtar completed its acquisition in August of four paper mills from G-P, including the Baileyville facility.
The sale of all four plants totaled $1.65 billion.
Domtar is the second-largest producer of uncoated free sheet paper in North America and the third largest in the world.
For the past few years, it has been a roller coaster ride for the town and mill employees as the facility repeatedly opened and closed due to market conditions.
When the sale of the Baileyville mill was announced, many in the community said they hoped the new owner would be willing to invest in capital improvements, including replacement of the mill’s antique paper machine.
But George said Domtar does not throw money at a problem.
He said the company believes the way to make the mill profitable is through its employees.
Domtar would be supportive and offer guidance and help, but it would be up to the employees to look at problems, find solutions and make the facility profitable.
The vice president said management tells employees that their success depends upon their attitude.
“If you tweak that machine a bit more and press it a bit more and it becomes more profitable, then we will look at you as real winners and when you come up with a project, we will know it’s a winning project. The future of [the mill] lies very much with the people …. There is no magic recipe,” he said.
The Baileyville mill has an annual capacity of approximately 125,000 tons of premium-and business-grade paper. The mill, George said, eventually will be asked to focus on refining its product lines and on certain paper products.
Even in tough times, George said, Domtar does not look to lay off employees first.
“We have a certain business model where we put employees very much at the center … they are the ones who are going to help us be successful in a very tough marketplace,” he said. “There may be a point in time where we have to make a decision and take significant down time at some facilities. I don’t have a crystal ball. … But our first reaction will be to say how can we hunker down and protect people? How can we keep on running while still making at least our costs?”
As G-P’s successor, Domtar is now the largest shipper at the recently expanded Estes Head port in Eastport. George said he did not believe that would change in the foreseeable future.
Asked if the company had any concerns about a global recession that would affect national and international markets, George, who is Canadian, said he had confidence in President Bush and in the American people.
“I am not speaking for the company. I don’t think we are going to hit a recession. I really do believe, politically, President Bush will do everything he can to help keep the economy going because that is a signal of strength. And secondly, I always say to my colleagues, ‘Do not underestimate the resolve of the American people.'”
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