Local container plant serves scores of customers in diverse industries

By: Chalie Mathews, Herald Times Reporter

Name of business: International Paper — Manitowoc Container Plant

Ownership: International Paper, a public company traded on the New York Stock Exchange. The paper and packaging company has operations in North America, Europe, Latin America, Russia, Asia and North Africa.

Its Industrial Packaging segment includes the Manitowoc container plant. International Paper has some 56,000 employees worldwide including about 175 in Manitowoc. IP generated approximately $23 billion in revenue in 2009.

International Paper bought the Manitowoc plant from Weyerhaeuser in 2008.

Location: 2000 S. 18th St., Manitowoc

Phone number: 684-4454

Web site: www.international paper.com

Services provided-products sold: Tracy Ahola is the Wisconsin Region Complex General Manager and oversees container plants in Manitowoc, Fond du Lac and Rockford, Ill.

The three plants together have about 400 employees and generate about $200 million in annual sales.

He had been plant manager in Manitowoc for Weyerhaeuser but his duties expanded after International Paper's buyout of the 283,000-square-foot facility.

Ahola explained trees are grown and harvested. The wood is turned into paper, which is manufactured into boxes and sold to customers for their packaging needs. The intent is for most boxes to be recycled by end-users.

Paper rolls weighing more than 7,000 pounds each come into the plant via train with a rail spur extending into the plant. Forklifts put the rolls into place at the corrugator and different corrugated converting machines.

Other product lines are dedicated to cutting, shaping, gluing and application of pre-printed or printing multi-color labels.

More than 90 percent of all products shipped in the U.S. are shipped in corrugated boxes.

Who are the customers and from where: Lakeshore area customers using containers produced on 18th Street include Lakeside Foods, Cher-Make Sausage, Northern Labs, Manitowoc Custom Molding and
Foster Needle.

But the Manitowoc plant has scores of clients within a 150-mile radius.

A sales force is constantly seeking new accounts, with Todd Gregorie leading the sales team for the three plants.

How has business changed: Technology advances are designed to maximize time-sensitive productivity including automated pre-feeders of stock, and extensive plant conveyorization.

Customer service representatives, including Chris Herzog, can get real-time factory floor feedback about how an individual customer's order is progressing.

Production line capacity can be maximized between Manitowoc and Fond du Lac sharing customers and resources.

Who is the competition: On a national basis, International Paper often is competing with Smurfit-Stone and Georgia Pacific, as well as Green Bay Packaging for Wisconsin customers. Ahola said that in the U.S., International Paper leads the pack, followed by Smurfit-Stone, then Georgia Pacific.

What are the keys to success: Each morning Ahola and leadership at the two Wisconsin plants and the facility in Rockford hold a conference call to go over safety, quality control and production factors comprising the "Zone Daily Huddle Performance Summary."

One recent Friday, Ahola congratulated Rockford plant management whose facility was just a few hours away from going two years without an OSHA recordable incident resulting in lost time due to on-site injury.

They discussed bidding strategies, including how to potentially secure a client who would be ordering some 113 million square feet of containerboard packaging.

Ahola said the expertise and dedication of Manitowoc plant personnel are competitive advantages.

"As we look at this economic downturn, we have  weathered it well with no layoffs," he said.  "Everybody knows we're here for one reason — to satisfy our customers."

The plant operates three shifts, five days per week. Many of the union production workers have been with the plant for decades.

Jean Kavina, has 34 years of service. "Being involved in different committees for the company and local union has given me many experiences and allowed me to travel throughout the U.S. I've made many good friends here, one of whom became my husband."

Factors under control of management-ownership: Ahola said the individuals they choose to hire and instituting and adhering to high safety and  performance standards.

Factors not under control of management-ownership: "We're having a major issue with wood … heavy rains in the South have made it hard to harvest the wood and get it into the mills. This has caused prices to escalate and inventory to decline from about one month's worth to one week," Ahola said.

What is challenging: "There is always room for change and improvement," Herzog said. "We need to stay on top of technology, stay close to our customers and their needs."

What is enjoyable: "It's been a good day when we move (a client's order) up and the customer says, 'I'm so happy it made it … our product got out on time and it looks wonderful,'" Herzog said.

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