11/16/2006

Company buys former G-P plant

By
Record-Eagle staff writer

GAYLORD — An idle particleboard plant in Gaylord's industrial area soon will be occupied by another company that would provide up to 100 jobs in the wood products industry.

Upper 40 is a startup business affiliated with a Detroit-based wood products company. The company plans to buy the abandoned Georgia-Pacific plant and eventually hire up to 100 workers to make wood pellets for heating fuel in European markets.

It's welcome news to those who lost their jobs this year.

"I'm sure there are a bunch of old G-P workers who will apply,” said Kim Ostrander, who was among the 210 people who were laid-off when the plant closed in March.

She attends school, and her husband, Jerry, who also lost his job at the plant, found work with a local oil and gas company.

"But I may want to get back to wood products. Do you know when they'll be taking applications?” Ostrander said.

Upper 40 President Chris Delusky said the company will reopen the site and begin to manufacture wood pellet fuel before the year's end. The sale will be completed next month, he said.

"We look forward to the coming months and are extremely excited to be a part of the reopening of the plant,” Delusky said.

The 2005 assessed value of the factory and property was nearly $16 million.

About 100 workers could be employed within the next 12 to 18 months, Delusky said.

"When this facility closed, not only did it affect the plant employees, but also other businesses that supplied and contracted with G-P,” said Paul Beachnau, Otsego County board chairman. "A lot of these trucking and logging companies will be able to come back in.”

Since the plant's closure eight months ago, the local economy has stagnated, Beachnau said, "but something like this can spur the economy in any community.”

Bob Kasprzak, executive director of the local chamber and board member for the county's economic alliance, said tax incentives approved by local and state leaders at the site helped attract Upper 40.

"Another one of the things that is a great benefit at this site is the natural resources. The raw materials are right here,” Kasprzak said.

See related stories:

• Georgia-Pacific closes, 210 people out of work - March 7, 2006
• Plant closure triggers shockwaves - March 8, 2006
• Georgia-Pacific, union talks continue in aftermath of closure - March 8, 2006
• Former plant workers face uncertain future - March 12, 2006
• Tax breaks, other projects pitched to soften the blow - March 12, 2006
• Meeting to address G-P plant closing - March 18, 2006
• Local officials push for a tax-free zone - April 4, 2006
• Former employees struggle to rebound - April 9, 2006
• Severance packages announced - April 11, 2006
• Businesses file suit against Georgia-Pacific, former manager - April 12, 2006
• More help is on the way for former Georgia-Pacific employees - May 10, 2006

See related editorials:

• Editorial: G-P's failure to warn workers is its legacy - April 19, 2006
• Editorial: Renaissance zone is idea worth pursuing - March 22, 2006