EWEN - Residents and officials in Ontonagon County are looking for the community to band together to help save the former Smurfit-Stone Container Corporation mill.
Prosecuting Attorney James Jessup has held meetings this week with community members to encourage people to write letters to a federal bankruptcy judge in hopes of saving the mill so it can be sold and used for something else, providing employment to area residents.
In early February, the federal bankruptcy judge from Delaware ordered Smurfit-Stone Container Corp., a company in bankruptcy, to work with representatives of two communities where it has closed mills to discuss possible future uses for the properties, according to the Associated Press.
Smurfit-Stone has closed mills in Montana and in Ontonagon, but the company refused to meet with community officials interested in finding other uses for the facilities.
Thursday evening at the Ewen-Trout Creek School, Jessup met with members of the community and gave an overview of Smurfit-Stone, and asked that they send letters to the Honorable Brendan L. Shannon concerning the mill.
"The mill employed more than 180 individuals," Jessup said.
Jessup said in order to sell the mill, Smurfit-Stone Container Corp. will need to gather and release financial information, yet they have failed to do so.
Jessup said when an interested party approached Smurfit-Stone Container Corp. to purchase the mill, the corporation said the mill was not viable as a paper mill.
"They said, 'We made the determination that the Ontonagon mill would not be a viable paper mill; you don't get the financial information,'" he said. "They made their business judgement before showing the group the financial information."
The Ontonagon mill provided 2 percent of revenue for the corporation, and was the largest employer in Ontonagon County, affecting approximately 400 jobs.
Jessup said something needs to be done to move the company to sell the mill and employ the 180 capable workers.
Jessup came up with a letter writing campaign where members of the community can choose to make a personal impact concerning the mill. Jessup has asked for the government to get involved, including federal and state legislatures and the attorney general.
"Mike Lahti (D-Hancock) and Mike Prusi (D-Ishpeming) have been very good," Jessup said. "I talk to Mike Lahti pretty much every other day and he's interested in what's happening and what he can do."
Jessup fears if the mill is a total loss it will be followed by local businesses, schools or the hospital.
"Something needs to be done," he said. "Send letters."
The doors closed permanently at the mill, with no explanation, in late December after a series of layoff periods throughout 2009.
Jessup said one of the main mysteries is why the corporation was so desperate to close the mill but has not moved forward with selling it.
"There is no rhyme or reason for that," he said. "When the mill was producing paper in 2009, it made $1 to $2 million in profit. The mill has never lost on a yearly basis."
By the end of January, the unemployment rate in Ontonagon tipped the scale at 23.6 percent and was on the rise.
Recently, the heat has been turned off at the mill with the promise that the equipment has been drained and would not get damaged. If damaged, it would make the mill harder to sell, Jessup said.
"This is a viable mill," he said. "Who wouldn't want it?"
Jessup encourages sending letters to urge that the debtor and its officers, attorneys and financial advisors disclose financial information to interested buyers.
Letters can be sent to the Honorable Brendan L. Shannon, at 824 N. Market St., Third Floor, Wilmington, DE 19801. Include the case number - Case # 09-10235 (BLS) Chapter 11 - on the envelope.
Stacey Kukkonen can be reached at skukkonen@mininggazette.com.