High points of the second response team meeting on April 28th:

They now have the spreadsheet with employee ZIP Codes, to identify the geography affected by possible layoffs.

Pixelle is having employee issues: 10 people have left, and they are near to struggling to maintain the mill.

Everson: Pixelle is being pressured to produce to the end of the year; suspects H.I.G. might use failure of employees as excuse to close mill.

Glass: The delay is not happening as they understood; Pixelle is not allowing orders to be taken like expected; breakdown of coordination or inconsistent actions

Eallonardo: The local plant manager learned that the mill was remaining open only through news reports – not from the company; heard that Pixelle is not paying local contractors.

Everson: We need to be sure we are not violating confidentiality. Eallonardo: This is common knowledge.

No way to expect employees to stay on when the plant’s closing status is still at April 15th, not 18th.

OUC is offering to to help train employees.

The Chamber will support the workforce. If there is no hope for the mill, then Chamber will support a small business development center – like help mill workers to have a “side hustle.”

Note what is NOT said in Pixelle’s news release on the delayed closing: there is no mention there will NOT be layoffs.

Is anyone in direct contact with H.I.G.? Eallonardo: probably only U.S. Senator Bernie Moreno.

Throne: The longer the mill hangs in the balance, the more employees will leave.

Glass: Is our interest in the employees, or in the mill? Two different things. Is it for sale? Is there a potential investor? Will there be an incumbent workforce, or an empty mill?

Everson: In his previous career, he has bought and sold companies…but with the workforce intact.

60% of Pixelle’s product is carbonless paper, which is at the end of its lifespan. The mill could need retooling.

What about pension packages? Eallonardo: Pixelle went through a “silver tsunami” – they lost 500 years worth of experience with a mass retirement.

Glass: There are many things we can do in tandem, but we must be careful – we don’t want to frustrate employees to the point of saying “I’m done.” We want to chase viable solutions.

A huge brownfield in the south side of Chillicothe would be a worse option. The best is a buyer to reuse the mill. And, we don’t want to keep the mill on life-support – instead, revive it.

Everson: What type of incentive package can be offered? Eallonardo: JobsOhio is working on that. Glass: We may not want to obligate ourselves with incentives if things fall apart. Everson: We need rules and responsibilities for that.

Chillicothe Council president Kevin Shoemaker: I also have experience in working with redeveloping the Piketon atomic plant.

This is like assembling a jigsaw puzzle without a picture – but as we assemble the perimeter, can build the picture of what we want it to look like.

A new use may net only only 300 jobs.

What are we trying to get to? “If you want the baby to look like you, you’d better be there at conception.”

Eallonardo: We may not want to invest in the mill if it closes at the end of the year. Ross County Commissioner Oody Lowe: “We don’t want to give up the farm just to keep a field.”

Glass: We need to create the picture to define the puzzle.

Everson: We need a contingency plan – worst, best, middle-case scenarios.

Oody: Our path may change three or four times.

Glass: We need to walk in step with state and national officials to avoid redundancies.

Ross County Planner Devon Shoemaker: Is an employee purchase possible? An ESOP [Employee Stock Ownership Plan]? Throne: is that what NewPage did, after MeadWestvaco? – but so long ago.

Alex Sharfetter of the office of U.S. Senator Bernie Moreno: We hope to get a clarification in the next one or two days – hope very clear – getting answers very shortly.

Hope Pixelle honors their verbal promise

Scribner: how is the city engaged? Kevin Shoemaker: we are here, but limited engagement. We will be as involved as we can without getting in the way.

We may need executive sessions to protect confidential information for negotiations. Glass: We are moving to that stage, the discussion is maturing.

Throne: We must prepare the public to learn about our efforts. We will give all we can without jeopardizing confidentiality. We need to put out regular news releases.

Glass: We must keep announcing progress to show we continue to work on the issue.

Throne: Skepticism is ok – but we don’t want cynicism. If the message is the same negative answer, people will stop listening.

Everson: We need to prepare for the worst case scenario, but humanely. I have lessons on that from my career of shutting down companies – we need credibility before we can earn trust. I was a “growth manager,” but not for private equity [like H.I.G. that owns Pixelle). If I laid off people, I found work for them.

If a company is considering “greenfield” construction, it can take 10 years – but the paper mill can be made available immediately. It’s like looking for a home – you have specifics you are looking for, but you’re usually looking for a pre-existing house – you either take the time to build, or buy existing.

Everson: Though the cost to build versus cost to convert are both expensive.

Michelle Fay

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