Forest Resources withdraws interest in purchasing former NewPage paper mill in Kimberly, Wisconsin, citing economic pressures, changes in market conditions; NewPage group continues re-use planning for mill site
NEW NORTH, Wisconsin
October 12, 2011
– The NewPage Kimberly Mill Re-Use working group reports a prospect, Forest Resources, LLC, has withdrawn its interest in purchasing the former NewPage Kimberly Mill. Conversations on redevelopment plans for the mill with Forest Resources extended over the past nine months and have ended with the company’s decision to withdraw consideration, citing economic pressures and changes in market conditions that no longer support the proposed business model.
The NewPage Kimberly Mill Re-Use working group worked closely with Forest Resources, assisting with due diligence and planning for redevelopment. The working group includes representatives from Village of Kimberly; New North, Inc.; Outagamie County; Fox Cities Chamber of Commerce; paper engineering consultant firm, ENVIRON Corp.; Wisconsin Economic Development Corporation WEDC; and the Local 2-9 of the United Steelworkers.
“All of the members of the group worked hard to promote every option for the company, including offering resources and assistance whenever needed,” said Village of Kimberly Administrator Rick Hermus. “Since the beginning of the year we have been having progressive conversations with Forest Resources, yet recent developments caused the company to withdraw its continued interest in the mill.”
Despite the new developments of Forest Resources, the group continues re-use planning for the mill site, including pursuing re-use opportunities for markets other than paper.
“This company was a viable opportunity for the site for a paper production operation and the group worked hard to offer the best support,” said Jerry Murphy, Executive Director of New North, Inc. “The group continues to look for prospects exploring re-use options for different markets other than paper. The site has real potential to serve alternative markets that could take advantage of the existing, built-out infrastructure and facilities of the mill.”
New North, Inc. is the regional collaboration effort focused on promoting regional cooperation and economic development in the 18-county region in Northeast Wisconsin known as the New North region. The 18 counties included in the New North are Outagamie, Winnebago, Calumet, Waupaca, Brown, Shawano, Oconto, Marinette, Door, Kewaunee, Sheboygan, Manitowoc, Fond du Lac, Green Lake, Marquette, Florence, Menominee, and Waushara. To find out more information about New North, Inc., please visit our website at http://www.thenewnorth.com.