Neena Inc. Announced Closure of Appleton Paper Mill Operations

SEATTLE (Scrap Monster): Neenah Inc. announced a series of operational changes. These are in line with the company’s ongoing commitment to accelerate growth, further strengthen the company’s margins and create additional value for its customers and shareholders.

First among the decisions is the closure of its Appleton, Wisconsin facility by the end of third quarter this year. The closure of the paper mill will result in financial implications including an estimated EBITDA benefit of nearly $7-$8 million per year. Furthermore, this will lead to decline in annual revenues by approximately $20-$25 million.

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Commenting on the decision, Julie Schertell, President and Chief Executive Officer, Neenah Inc. said that the decision to close the facility was a difficult one and was not taken lightly. The company will continue to serve its customers with innovative filtration solutions from its other manufacturing facilities in Europe and North America, she added.

The company has decided to invest $13 million in new release liner coating capacity in support of its growing specialty coatings business. The capacity will come online by mid-2023. In addition, it has also decided to restart an idled Fine Paper & Packaging asset in support of its premium packaging business, which is expected by the final quarter of 2021.

The above actions are expected to boost the company’s efforts to achieve its long-term goal of 5% average annual revenue growth.