Wausau to invest $27 million in mill here

Wausau Paper approved a $27 million capital investment in the Brainerd mill Tuesday.

The investment is expected to open up markets in the paint, medical and automotive industries among others as the mill produces a wide range of unsaturated tape-backing paper - which is used to produce masking tape.

The mill retains its ability to produce premium printing and writing products.

"This will allow us to shift production to our growth area and tape is one of those areas," said Jeff Verdoorn, vice president of operations for the paper segment, who was in Brainerd Tuesday.

Verdoorn said the rebuild will improve the quality across the entire grade line as the No. 7 paper machine - old No. 6 when the machine was with the Potlatch and Missota mills - is rebuilt. The mill's No. 8 paper machine will remain idle.

The rebuild is scheduled for completion at the end of the first quarter of 2011.

The investment isn't expected to add jobs, but Verdoorn said it will improve the security of the existing employee base at the mill, which employs about 180 people. However, the project will create construction jobs.

Purchase orders for the rebuild were expected to be made Wednesday and equipment will be on site in November. Wausau reported the rebuilt machine will include state-of-the-art technology.

In a news release, Thomas J. Howatt, president and chief executive officer said: "This investment solidifies our leadership position in the global tape market and reaffirms our commitment to support growth of domestic and international customers. Once complete, the rebuild will equip us with one of the most advanced and cost-effective unsaturated tape-backing machines in the world, enabling us to further penetrate this highly specialized market.

"While extending its production capabilities, the Brainerd mill will continue to have the capability to produce premium printing and writing products, including our flagship Astrobrights line of brightly colored paper. We remain committed to the success of both our printing and writing and tape customers and this investment ensures the flexibility to effectively secure both market categories."

Wausau formed its paper segment on Jan. 1 when it combined the specialty products and printing and writing businesses into a single unit focused on what the company reported as profitable growth in five strategic markets - food, tape, print and color, liner and industrial.

RENEE RICHARDSON may be reached at renee.richardson@brainerddispatch.com or 855-5852.