January 27, 2010 Finch Paper explores $20M upgrade to woodyard By BLAKE JONES, bjones@poststar.com
GLENS FALLS -- Finch Paper LLC is talking about turning over its wood-processing operation to a Georgia firm that would oversee a $20 million modernization of the woodyard.
The historic Glens Falls paper mill is seeking city permits to overhaul the 11-acre parcel where logs are stored, debarked, chipped and later used to make pulp.
Through a partnership with Finch, Augusta, Ga.-based Fulghum Fibres would be tasked with building and then operating the new facility.
Finch Paper CEO Joseph Raccuia was not available for comment on Wednesday.
Company spokesman John Brodt said the partnership, if it happens, would streamline operations, increase efficiency and improve paper quality.
It would also boost Finch's competitive edge by allowing the company to focus on what it does best - making paper.
According to the city permit application, some structures in the woodyard would be demolished and replaced with new buildings. A 125-foot crane, a new chipper and debarker and other equipment would also be added.
The new facility would also eliminate the need for Finch's Pryun's Island facility, where logs are cut into 4-foot sections before arriving at the woodyard.
Brodt said that site would eventually close, and there are no plans for the future of the property.
Finch Paper has, however, assured its 60 or so employees involved in wood-processing operations that there will not be job cuts as a result of the deal.
Brodt said management worked closely with union leaders on the plans and has their support to move forward.
"We made it clear to the unions and employees that no current Finch employee will lose employment as a result of the project," Brodt said. He declined to comment on whether the arrangements would involve a rehiring of Finch woodyard workers by Fulghum Fibres.
Robert Beard, a former regional representative for United Steel Workers, said he was involved in union negotiations last fall that included discussion of the modernization plans.
Beard said the current woodyard equipment is "ancient stuff" that could use an upgrade.
"It's progress, and it's going to make that woodyard more efficient," Beard said.
Glens Falls Economic/Community Development Director Edward Bartholomew also saw the plans as a good move for the company and community.
He said less traffic on Murray Street to the Pruyn's Island processing facility is a positive for the project. He added that the ongoing changes at the company are a sign Finch is committed to the area.
"That shows confidence in the productivity of our workers and also a corporate commitment to the city of Glens Falls," Bartholomew said.
Brodt said the project could move forward sometime this year, after the partnership with Fulghum and the necessary permits are finalized.
Construction is expected to take seven months, according to the city permit application. During that time, operations would not be interrupted.
Brodt declined to comment on how the estimated $20 million project cost would be split between the two firms. He said Finch would like to retain ownership of the woodyard and lease the property to Fulghum.
Finch would also still be responsible for making pulp and obtaining wood from suppliers.
The permit application is scheduled to be discussed at a Feb. 2 Planning Board meeting.
