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Burrows Paper Corporation Announces $7 million Conversion and Expansion Plans

Burrows Paper Corporation

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Burrows Paper Corporation Announces $7 million Conversion and Expansion Plans

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Little Falls, New York

Company:

Burrows Paper Corporation

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Burrows Paper Corporation

Burrows Paper Corporation, headquartered in Little Falls, New York, today announced another step in its Innovate and Invest global strategy.

The company is implementing a simultaneous conversion and expansion project, part of a comprehensive strategic plan to expand Burrows domestic paper and global packaging business groups.

Burrows is a worldwide supplier of light weight specialty paper and packaging solutions. In announcements to staff and customers today, Rose Mihaly, President and Chief Operating Officer, stated 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-inch wide paper machine, PM2, and begin repurposing the machine components and space to the adjacent paper machine, PM3, at the same facility," said Mihaly. "By dismantling and redeploying the smaller paper machine, we will realize a series of improvements including better traffic flow, safety enhancements, increased productivity on PM3, and the ability to dedicate other equipment to meet special customer requests," Mihaly said. "Our goal is for the transition to have little or no effect on employment levels," Mihaly stated.

"This has been a collaborative process with our union leaders, from planning to arriving at an implementation schedule. Employees assigned to PM2 today will continue as usual through later this year," continued Mihaly. "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 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," said Mihaly. "That starts with our outstanding employees who understand customer expectations and reliance on Burrows products."

Expansion and conversion has been a hallmark of Burrows nearly 100-year business model. Chairman and Chief Executive Officer Bill Burrows stated, "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," said Burrows. "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." Mihaly added that the company looks forward to continuing long-term growth in its local and worldwide operations.

This estimated $7 million conversion and expansion investment is expected to be completed by the end of 2014. "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 Corporation was awarded grant funding from the Empire State Development Corporation and NYS Excelsior Jobs program tax credits to support the expansion project. Burrows Paper Corporation operates four paper mills and five packaging converting facilities domestically and abroad – New York, Ohio, Nevada, Iowa, Mississippi, The Netherlands, and China. Its mills and facilities maintain the highest standards and hold certifications from ISO9001, HACCP, the Forest Stewardship Council, Sustainable Forest Initiative, and the Programme for the Endorsement of Forest Certification.

Burrows 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 light weight printable tissue paper from 7.5 to 30 pounds (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 innovative industrial applications. For more information, visit www.burrowspaper.com. MEDIA CONTACT: Rose Mihaly, , +1.860.335.8521