Rose Mihaly, president and COO, said that the investment will both advance Burrows market position and yield operational efficiencies. Burrows 2014 action plan calls for the conversion and redeployment of physical facility use and machine components in its Mill Street paper mill. "In July, Burrows will shut down its 90-in.-wide paper machine, PM 2, and begin repurposing the machine components and space to the adjacent paper machine, PM 3, at the same facility," Mihaly explained. "By dismantling and redeploying the smaller paper machine, we will realize a series of improvements including better traffic flow, safety enhancements, increased productivity on PM 3, and the ability to dedicate other equipment to meet special customer requests.
"Our goal is for the transition to have little or no effect on employment levels," Mihaly continued. "This has been a collaborative process with our union leaders, from planning to arriving at an implementation schedule. Employees assigned to PM 2 today will continue as usual through later this year. During the transition, we will work closely with each person to align skills and interests with job opportunities in our Mill Street and Mohawk Valley mills, and in other Burrows facilities."
This latest initiative is similar to company investments in its Mohawk Valley mill, where an older machine was removed to allow for facility improvements, creating production efficiencies and opportunities for product development. Following installation of new equipment this summer, Burrows says it will launch a new patented product for which it has already secured commercial orders. "Our primary goal with changes of this nature is to implement improvements while ensuring uninterrupted service to customers," Mihaly said. "That starts with our outstanding employees who understand customer expectations and reliance on Burrows products."
Chairman and CEO Bill Burrows noted that "this is one piece of an ongoing plan to yield cost savings and operating efficiencies, freeing up capital to invest in capabilities that meet customer demand." He attributes the company's success to a combination of innovation, growth investments, and financial discipline. "In our industry, changes happen so frequently that just keeping pace is not enough. We must anticipate how markets are shifting and where new demands are likely to emerge. We then direct that knowledge to new products and capabilities."
This estimated $7 million conversion and expansion investment is expected to be completed by the end of this year. "We are proud to be a privately-held paper and packaging manufacturer that continues to invest and grow in New York State," said Burrows. "We appreciate the support of local and state economic development efforts that recognize the value of New York State's manufacturing sector." Burrows Paper Corp. was awarded grant funding from the Empire State Development Corp. and NYS Excelsior Jobs program tax credits to support the expansion project.
Burrows Paper operates four paper mills and five packaging converting facilities domestically and abroad, in New York, Ohio, Nevada, Iowa, Mississippi, the Netherlands, and China. The company incorporates nearly 100 years of papermaking experience into its food packaging line of products and is one of only a few companies capable of producing lightweight printable tissue paper from 7.5 to 30 lb. (12.2 to 48.9 gsm). Burrows offers Machine Glaze and Machine Finish paper grades for a variety of uses such as medical and food packaging and many industrial applications.
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