Newark Group Closing California Plant

Eighty-five years of manufacturing history and about 130 jobs are coming to an end in Stockton, Calif., with the announced closure of the former Fibreboard plant.

The Newark Group said earlier this week that it would immediately close the Newark Sierra Paperboard Corp. mill.

Employees saw little sign of trouble; new workers had been hired within the past week or so.

The announcement earlier this week surprised San Joaquin County WorkNET officials.

"We haven't got a warning notice from them," said Fran Aguilera, WorkNET economic development director, referring to company officials.

State and federal laws require 60 days' notice if a company plans layoffs affecting 50 or more workers.

In a one-page announcement, the company said the plant was at a competitive disadvantage because of the high cost of doing business in California, particularly in energy and material costs, and restricted demand.

"The significant financial investment that would be required just to bring the mill back to a marginally competitive position is, however, neither feasible nor wise in this difficult recovery," said the announcement by Fred G. von Zuben, Newark Group chairman and chief executive.

"This is out of the blue... They did not give us time or warning," said Raymond Reynoso, a union delegate and 38-year plant worker.

"We would like to have some answers as to why they shut it down," he said.

"Then they ordered lunch. They ordered lunch for the management," Crump said.