Pulp Friction

A private equity firm’s decision to shut down a profitable paper mill devastates a Wisconsin community.

By Roger Bybee

The village of Kimberly, on the northern edge of Lake Winnebago in the Wisconsin Fox Valley, epitomizes the small, almost idyllic Midwestern town. Kimberly is a hybrid of the nostalgic past and the fast-paced present -- from its old-fashioned soda fountain at a local pharmacy [RETURN TO ARTICLE]

  • Reader Comments

     Page 1 of 1 pages

    Cerberus is the name given to the entity which, in Greek and Roman mythology, is a multi-headed dog which guards the gates of Hades, to prevent those who have crossed the river Styx from ever escaping.
    How fitting. A company trying to keep people from escaping from hell. Beautiful.

    United States Posted by pathman on Jan 7, 2009 at 12:42 PM

    Over the last few years we have seen a pattern of capacity reduction in the pulp and paper industry aimed at driving up the price of paper. Newsprint has increased by some 30% in a year. Recently some paper companies have started short term shut downs. These can be directed at specific product lines to adjust to the market ( or to adjust the market to the shortage created) The ability of the paper companies to shut down mills seemingly at will for durations unknown can be used to intimidate unions.  Not a healthy situation at all. In Canada a provincial government has threatened to repatriate woodland concessions to the province. That will give a clear message to paper companies - create jobs and we will support you, shutter plants and there is no come back.

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