SMART Papers recently finalized the sale of the majority of its manufacturing and power generation operating assets at the Hamilton facilities to a joint-venture led by Farmington Hills, Michigan-based Hilco Industrial. SMART Power owns and operates a new, 36 MW power generation facility at the Hamilton mill, located 25 miles northwest of Cincinnati.
Hilco and SMART have entered into an exclusive marketing and business alliance under which Hilco, working closely with SMART Papers, will jointly market the operating assets and business while SMART Papers continues to actively run its papermaking facility in Hamilton. Hilco and SMART Papers could identify new ownership that would acquire the business and continue to operate it.
SMART Papers Chairman Tim Needham said veteran executive Andrew Howley has been retained as CEO to lead the wind-down of the company and day-to-day management of the business.
Paul Simpson, SMART Papers EVP of Sales and Marketing, will work with customers through the orderly wind-down of operations to support customer orders. Simpson said the company's full range of products will be available during the transition period.
Needham said today's action "is not a reflection on our dedicated, hard-working employees who remain committed to manufacturing the finest coated printing, label, and packaging papers in the world."
"Unfortunately, the continued U.S. economic slowdown has intensified the effects of reduced commercial printing demand," Needham said. Other factors that he said led to the company's decision include the "rapid expansion of low-priced Asian coated paper manufacturing, the increased costs of raw materials and chemicals, and the uncertainty on cost requirements of pending EPA legislation."
SMART Papers is the only North American producer of cast-coated paper. The papers are produced with a low-pressure, wet-casting process and used in commercial offset printing, digital printing, label, and packaging applications. The company also produces matte-coated papers.
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