FutureMark Manistique to close

Company says decision was driven by expenses associated with continuing operations.

FutureMark Manistique, a Manistique, Michigan-based paper mill that makes 100-percent-recycled-content uncoated printing and writing paper, has announced it will shut the mill down on or around March 24, 2015. The company, which recently started marketing the mill and intends to continue this process, says the closing has been caused by “large cash needs to fully reposition the mill.”

Matthew Nightingale, CEO of FutureMark Manistique, says, “This is an extremely difficult decision for us given the exceptional efforts put forth at the Manistique mill since it emerged from bankruptcy in 2012 to reposition the mill’s grade mix and invest strategic capital to improve the operational and financial performance of the mill. Despite this progress, the significant financial support from its ownership and lender group, and the dedication and hard work of all the Manistique employees, the mill was unable to return to profitability and consistently achieve positive financial results. This, combined with the ongoing challenges in the paper markets, has led to the decision to close the FutureMark Manistique mill on or around Tuesday, March 24.”

FutureMark closed its Alsip, Illinois, mill in late August 2014.

FutureMark says it intends to keep the Manistique mill open to fulfill as many immediate orders as possible and to support customer efforts to transition to new suppliers.

The Manistique mill employs 147 workers, and the announcement will affect all positions. A transition team will remain on-site for a period of time to shut down the mill, maintain the facility and infrastructure and support customers in the transition of products and services.

“Right up to today’s announcement we have been pursuing every option to keep the mill running, including a capital raise or an outright sale to a new owner,” says Nightingale. "We had a number of possibilities, but today it became apparent that none would go forward in the timeframe needed to keep the plant operating. We will continue these efforts even after closing the mill. We appreciate the tireless efforts of all of our Manistique employees and the warm support the community and local government have extended to us throughout our 95 years of operation in this region,” he adds.