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Sometimes it pays to take a chance.
Twenty years ago, a local group took a risk that didn't appear to make much sense at the time. But it worked out, Blair County Chamber of Commerce President/CEO Joe Hurd said about American Eagle Paper Mills in Tyrone, which is marking
20 years in operation.
After Mead and Westvaco merged in August 2001, the Tyrone mill was closed in October, putting more than 260 people out of work.
A group of employees and investors called Team Ten LLC came together to buy and reopen the mill, which was built in the 1880s.
"John Ferner and Chuck Whitfield ... put together a team of past employees and investors. It took us two years, and we bought the mill Sept. 4, 2003," said Clark Adelman, a Team Ten member and current vice president of finance and administration.
The first reel of paper from the reopened mill was turned out Nov. 14.
It took a team effort to purchase the mill and get it up and running, Adelman told members of the Chamber Breakfast Club Thursday at The Casino at Lakemont Park.
"Marty Marasco (retired president/CEO of Altoona Blair County Development Corp.) was a driving force. Support from Gov. Ed Rendell, state Sen. Robert Jubelirer, state representatives Jerry Stern and Mike Fleck were all integral in making the project a reality. Marty was the force behind us. People were not aware how important he was in bringing these jobs to the community. The owners made a real commitment that we would do everything we could to get the mill up and running," Adelman said.
The closure of the mill was devastating to the community, but the response was quick and monumental, said current ABCD Corp. President/CEO Steve McKnight.
"Led by ABCD Corp. and my predecessor Marty Marasco, a team of local investors was assembled recognizing the market potential in the plant, the product and the local workforce. Since that time, despite global market challenges and fluctuations, the mill has continued to produce a higher volume and greater efficiency," McKnight said. ABCD and local and state officials over the years have secured more $11 million in program funding and more $20 million of new capital investment.
"It is truly a success story that resulted in not only saving a major manufacturer but making it one of the more productive operations with continued major local economic impact," McKnight said.
For example, in 2013, the mill expanded its copy paper converting capacity by installing a high-speed integrated cut size sheeter. The installation doubled the production capacity.
In 2016, the company invested $8 million to replace its 1957 coal-fired boiler with a highly efficient natural gas boiler.
American Eagle Paper Mills is one of a few paper mills in the United States that produces 100% recycled uncoated printing and writing paper. Today, the mill employs about 200 and turns out 230 tons per day of recycled products.
'Most of what we make is private label. We keep coming up with new products," said Philip Devorris, who served as interim president from December 2018 to April 2020 and remains a member of the board of directors. His father, Don, was one of the original Team Ten LLC investors.
"We are the MTO of the paper business. We make 30 different colors of paper. We take small orders and are able to produce them," Adelman said.
The mill's employees have been the key to success.
"Our managers and professionals have been innovative to allow us to maximize our potential with less resources. We are still looking to hire 20 employees. Our employees always answer the call, filling in when necessary," Adelman said.
Several of the current owners have invested their own money into the mill.
"When they make an investment for the long run, you know you have a good future," Adelman said. "It has been a nice twenty year run and we hope to be here another
20 years."
The mill is a true example of a success story, Hurd said.
"There is so much that goes into running a business, starting one is one thing, but restarting it is another, we want to tell more of these success stories, they are here," Hurd said.
Mirror Staff Writer Walt Frank is at 814-946-7467.