Glatfelter has faith in community

2/4/2009

By Marvin Jones

Chillicothe Ross Chamber of Commerce

     George Glatfelter II said he sees an interesting year ahead for the plant he calls "The Big G". The global economy is the "elephant in the room," but he expects his namesake company to "weather the storm and emerge a better company."

     The “room” was the Shoemaker Convocation Center at Ohio University-Chillicothe where 365 attended the chamber’s 2009 Annual Dinner in early February. The chairman and CEO of the Glatfelter Company reiterated the theme of the evening in his closing remarks. “I would like to offer my sincere thanks to the community of Chillicothe and Ross County for proving that you truly are a community we can believe in.”

     When Glatfelter bought the NewPage (formerly Mead) paper mill in Chillicothe on April 3, 2006, it was a "major milestone." Glatfelter said. "The first thing we told the (Chillicothe) employees is: 'We did not buy the Chillicothe mill for what it is today, but for what we believe that it will become.'"

     At that time, the paper industry was undergoing great change. Many of the big companies did not survive as well as many of the specialty companies. Glatfelter said his company committed to staggering changes. Since 1998, the industry has seen 152 mills closed and 42 percent of the workforce idled.

     "On my first visit here, I was struck by the similarities to Spring Grove. (Pa., Glatfelter headquarters) The mills were also similar. Our team was excited by the potential here." 

     "We bet our company on the potential of the Glatfelter people in Chillicothe to commit to change."

     That change has worked. The Chillicothe Glatfelter mill just completed a profitable year. Glatfelter said the plant showed a 50 percent injury reduction and is 35 percent below the industry average.

These statistics "justified our faith when the acquisition was made," Glatfelter said. He listed the strengths of the company as a whole as:

• A solid balance sheet
• A global reach
• A broad spectrum of products
• Strong new product development
• Proven track record of the management team.

     More changes will be expected as the company faces the challenges of the current market, he said, which could include further workforce reductions. But he sees the company continuing to be profitable far into the future.