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Oregon Governor, IP Discuss Mill's Future

Oregon Gov. Ted Kulongoski has telephoned John Faraci, ceo of International Paper Co., and had what his staff called a “very positive conversation” about finding another use for the Albany board mill.

The call took place Nov. 23, and Anna Richter-Taylor, the governor’s chief spokesperson, summarized it for the Democrat-Herald.

From Salem, Kulongoski spoke with Faraci in Memphis, where International Paper is headquartered, and they talked for 20 to 30 minutes.

They agreed to keep communications open and to have the state and the company work together on trying to find some other line of industrial use that could use the Millersburg plant.

In an interview, Richter-Taylor gave no details or timetables, but she said the idea was to look for some other kind of production that would “ultimately  deliver employment opportunities for the citizens of the Albany area.”

Since the 1950s, the mill has been producing containerboard. International Paper plans to shut down production in December and lay off the 230 remaining employees. Another 40 or so had already been on layoff.

Kulongoski thought the talk with Faraci was a very positive one and he was pleased with the exchange, according to Richter-Taylor.

He pledged to Faraci that the state would do what it could to help the company find another use for the plant, and Faraci said he would activate a company task force to work on alternative uses.

Whatever the state can do will be coordinated by Bob Warren, the regional representative for this area of Oregon Business, the state’s business development arm.

Warren, who listened to the governor’s side of the call, says the plant is not for sale. He got the impression IP looks at it as a significant asset and would be looking for some industrial use for it, though not to make paper.

“No decisions have been made,” Warren said, who added he looked forward to making contact with the IP task force on the issue.

Warren described the tone of the conversation as amicable.