Appvion to Close Spring Mill, Eliminating 300 Jobs

News of Appvion's decision to close its Spring Mill plant in Roaring Spring has sent shockwaves through the community.

Nearly four years after filing bankruptcy and three years after being sold in a "stalking horse" sale which saw the company sold to a group of its lenders, Appvion has notified employees that the Spring Mill plant will cease operations by the end of March, putting nearly 300 people out of work.

While company officials have not yet publicly addressed its decision, employees said they were notified Monday morning that they will be losing their jobs.

News of Spring Mill's closing caught local leaders off guard. State Sen. Judy Ward said she was "shocked" when notified of the closing and said her office will begin work immediately to help the soon to be displaced workers. She said she has reached out to the Altoona Blair County Development Corp (ABCD) to formulate a plan of action.

"We have been working with the ABCD to notify and engage the Governor's Action Team," she said. "We will also be working with CareerLink to get assistance for those displaced workers as soon as possible."

State Rep. Jim Gregory said there was no advanced notice of the closing and has asked company officials to meet with him and provide an explanation.

Steve McKnight, president and CEO of the ABCD Corp., said the COVID-19 pandemic may have played a part in Spring Mill's demise and that if a turnaround doesn't happen soon, more businesses could see the same fate.

"As I understand it, the pandemic restrictions overall impacted product demand and I would suspect the ability to sell product combining for the breaking point," he said. "If these measures continue, I am fearful of what is to come for other industry sectors. This is not sustainable."

With Spring Mill's closing, the area has lost more than 700 manufacturing jobs in the last three years. In 2019, North American Communications in Duncansville and WATCO Companies in Hollidaysburg closed leaving nearly 400 to seek new jobs.

The closing of the Spring Mill plant appears to be the final act in a saga that has kept employees on edge for nearly four years.

But as recently as 2016, the mill seemed to be on a reasonably firm financial footing as it celebrated 150 years since its founding.

Then-Congressman Bill Shuster toured the plant with local elected officials and retirees in October 2016. In addition to remarks from featured speakers, event activities included guided mill tours and a display of historical artifacts associated with the mill and its papermaking process.

At the time, the plant employed 470 workers.

About the Spring Mill

The mill is a fully integrated pulp and paper mill, which means the mill processes logs and wood chips to produce the fiber or pulp needed to make paper on site.

The mill has a long history in Roaring Spring. Recognizing the abundance of natural resources in the central Pennsylvania area, D.M. Bare, John Elby and John Morrison set out to build "the pioneer paper mill for the region." They founded their mill in 1866 in what was then known as Spangs Mills, which later became Roaring Spring, so named because of the powerful sound emitted by the local spring.

The mill operated as the D.M. Bare Paper Company until 1946 when it was purchased by the Combined Locks Paper Company of Combined Locks, Wisconsin, later to become Combined Paper Mills.

In 1969, Combined Paper Mills was acquired by The National Cash Register Company.

In 1971, it was merged with Appleton Coated Paper Company to form Appleton Papers. Over the next 20 years, Appleton Papers operated under several domestic and foreign owners until November 2001, when employees purchased the company. Appleton Papers changed its company name to Appvion, Inc. in May 2013.

In October 2017, the company filed for Chapter 11 bankruptcy which led to its sale to a group of lenders in a "stalking horse" bid for $340 million. The sale terminated the Employee Stock Ownership Plan (ESOP), resulting in employees losing millions in retirement funds.

In 2018, in what company officials described as "a way to maintain current production volumes while operating in a more efficient cost-effective way," Appvion permanently laid off 50 Spring Mill employees.

About Appvion, Inc.

Appvion's primary offerings include thermal, carbonless, and security paper, and consumer and industrial packaging. Appvion is headquartered in Appleton, Wisc., with manufacturing operations in Wisconsin and Pennsylvania.

Prayer meeting set

When the Cove community was hit on Monday with the news that Appvion plans to cease operations at its Spring Mill plant in Roaring Spring, shocked residents immediately began offering support to the soon to be displaced workers.

Memorial Church of the Brethren in Martinsburg is planning a community night of prayer on Sunday evening. According to the church's Facebook page, the event is to offer support for the families, individuals and businesses that will be affected by the plant's closing. The prayer night will be held from 7 p.m. to 8 p.m. Feb. 21 at the church.

The Memorial Church of the Brethren posted the following message to Facebook:

With the devastating news of the closure of the Appvion paper mill in Roaring Spring, comes the reality that many lives and families will be impacted. We want to make ourselves available as a church to offer support in any way that we can. This Sunday night from 7-8pm we will be hosting a community night of prayer for the Appvion families, and all of the businesses and individuals who will be affected by this closure. This event is open to anyone and everyone, so please join us!

https://www.facebook.com/events/1133391520424230/

A Facebook group called "Helping Appvion Employees" was created and is posting suggestions and plans to help employees.

Local Facebook groups have been flooded with words of encouragement and support as the news of Appvion's closing spread.

The hashtag #prayersforappvion has been created.

Any organization planning an Appvion-related event is welcome to post it to the Herald's Cove Calendar.

See the below for instructions about how to post events to the Cove Calendar.

Do you have an Appvion story to tell?

The Herald would like to talk to those who have something to say about the closing of the Spring Mill, especially if you are an employee or a former employee.

Please call the Herald office at 793-2144 or send an email to [email protected].

The Herald will consider withholding the identities of those who contact us, if warranted, in order to allow employees to speak freely.

The Herald is interested in talking to current employees, but those with stories from the mill's past are also welcome to contact the Herald.

The Herald will continue to provide updates on this story as information become available. Stories will be published in the print edition of the Herald each week but as information becomes available, it will be posted to

http://www.mcheraldonline.com.

How to use the Cove Calendar

(For Appvion Events)

To view the new Cove Calendar – 

1. Go to Herald website, http://www.mcheraldonline.com.

2. Click on the Calendar tab on the right of the screen.

3. Click on "Cove Calendar" in the drop-down box.

4. You can view the calendar in three different ways, "Pinboard," "Agenda," or "Monthly." You can select which you view you want by clicking on the arrow at the top right of the calendar.

5. Click on an event to find more information about it.

To search the new Cove Calendar –

1. Use the calendar search bar, which will look for keywords of the event.

2. Using the arrows on either side of the date box. The left arrow moves backward in time and the right arrow moves forward.

How to submit an event –

1. Anyone can submit an event. All submissions are reviewed.

2. Event submissions should provide basic information, such as who, what, when, where, and any other information viewers may need.

3. Entrance fees and ticket prices may not be included in free calendar postings. To provide the community with information about the cost of an event, please consider buying an ad in the Herald. A calendar posting may note that there is a charge for an event, but any specific mention of prices or fees will be deleted. (Note: The Herald recommends adding $1 or 50 cents to the ticket price for an event and using that income to pay for an ad in the Herald.)

4. Consider adding additional helpful information such as directions, registration deadlines and age restrictions.

5. The calendar administrator may send you an email asking for any information missing.

6. If your event has changed or cancelled, call the Herald office at (814) 793-2144. The administrator can edit your event or delete the event entirely.

7. The Herald reserves the right to reject any submitted event.