APPLETON, Wis. (WFRV) – Neenah, Inc. announced on Friday it will be making several changes to its business, one of which includes closing its Appleton facility, which produces transportation filtration products, by the end of the third quarter of 2021 in approximately 60 days.
“Closing a facility is always a difficult decision and not one we take lightly. This decision is not a reflection of our employees or their efforts, as the team has consistently worked hard to overcome obstacles, improve safety and drive results. We’ll continue to provide innovative filtration solutions and serve customers from our other manufacturing facilities in Europe and North America,” shared Julie Schertell, Neenah’s President and Chief Executive Officer.
Neena Inc., notes that an estimated annual revenue decrease will be one of the financial implications associated with the closure of the facility.
Nennah, Inc. says its decision to close the facility, as well as its other operational changes including investing $13 million in new release liner coating capacity and restarting an idled Fine Paper & Packaging asset, were reportedly made to accelerate growth, strengthen margins, and create value for customers and shareholders.
“These actions will drive accretive value and accelerate efforts toward our long-term revenue growth goal of 5% annually with strong, consistent margins. Both the investment in coating capacity for release liners and the start-up of an idled asset in support of premium packaging are aligned with our strategy to extend our capabilities into larger, growing markets with customers that value unique, premium solutions,” said Schertell.
According to a release, Neenah, Inc. says it plans to restart a smaller fine paper and packaging line at its facility in Neenah.
The company says, “Closing a facility is difficult because it affects the lives of our loyal employees who have worked very hard to make Neenah successful.” The company later revealed to Local 5 that approximately 100 employees will be impacted due to the closure.
However, Neenah, Inc. notes they do have open positions at the other three facilities in Fox River Valley and Central Wisconsin as well as other US facilities. They also added that the start-up of its asset at Neenah Mill has created 13 new roles.
Still very grateful for employee contributions, the company says it’s working closely with employees affected by the plant closure and the local union to provide support during the transition.