AMERICAN PAPER GROUP Bidder plans to stay in Boardman

The local operation would be too large to move to Indiana, a suitor says.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
BOARDMAN -- The lead bidder in the sale of American Paper Group intends to operate its two Boardman plants but isn't sure how many employees will be needed.
Our Sunday Visitor doesn't have space to bring American Paper's envelope-printing business to its plant in Huntington, Ind., said Kyle Hamilton, president and general manager of Our Sunday Visitor's envelope division.
He wouldn't disclose production details of the company's envelope division but said American Paper's business is much larger. The Boardman company has 40 percent of the country's church-envelope market and also prints commercial envelopes.
Our Sunday Visitor has 110 employees in its envelope division and 65 in its printing division, which publishes a Catholic newspaper and other items. American Paper has 330 workers at its plants on Southern Boulevard and McClurg Road.
Unsure of workers
Still unresolved is how many workers Our Sunday Visitor would need if it is successful in acquiring the local plants, Hamilton said.
The employment level will depend on how much business the plants retain before a bankruptcy sale is completed Jan. 14.
American Paper recently laid off 35 workers because of the loss of two customers. A company official said these customers were leery of having their orders met, even though American Paper assured them that the local plants would continue operating through the sale.
Both Our Sunday Visitor and American Paper have workers who are represented by the Graphic Communications International Union.
Hamilton said officials at Our Sunday Visitor already are working on getting this business back, and the company has not lost interest in acquiring in American Paper, he said. This would be the Indiana company's first acquisition.
Company's history
Our Sunday Visitor has been in business since 1912 and been printing church envelopes since 1917. It is the country's largest printer of envelopes for Catholic churches.
Our Sunday Visitor doesn't have any experience in printing commercial envelopes, however.
"We're definitely going to rely on the experience of the people in Youngstown," Hamilton said.
American Paper officials have said all companies who have expressed an interest in buying the local plants said they intend to keep the plants operating.
MWM Dexter, which prints church bulletins in St. Louis, was competing with Our Sunday Visitor to be considered the lead bidder because the lead bidder receives a break-up fee if it is outbid.
American Paper, which is owned by a New York investment company, filed for bankruptcy protection in November.
shilling@vindy.com