June 2008
By Felicia Willis, Associate Editor
We are all aware of what is considered the most important address in the United States, 1600 Pennsylvania Avenue, where the president lives. But how many of us are aware of another important 1600 Pennsylvania Avenue address, where American Eagle Paper Mills dwells in Tyrone, PA?
In the August 2003 issue of Pulp & Paper, we had high, albeit reserved, hopes for American Eagle Paper Mills. At that time, July 1, 2003, had been a red-letter day for Tyrone, PA. For on that particular day, a group of local business people and former employees known as Team Ten, LLC announced that they were buying the former Westvaco mill in Tyrone and reopening it as American Eagle Paper Mills.
In 2001 and with 265 employees, the mill – then owned by Westvaco was shut down because it was considered an uncompetitive facility. John Ferner, who had worked at the facility like his father before him, did not take the news sitting down. He was determined to try to save the mill, reinstate jobs and bring the facility back to its former glory. Ferner and former senior managers of the mill banded together to form Team Ten, LLC and purchase the plant. With Ferner as president, Team Ten, LLC is the operating group of American Eagle Paper Mills.
While people outside of Tyrone may have doubted that Team Ten would succeed with the re-opening of the mill, the company had a great deal of support from the community. Several regional politicians jumped on the bandwagon of support, and the group received a grant of $3 million from Pennsylvania’s Redevelopment Capital Assistance Program. They also received direct loans and guarantees from the Pennsylvania Industrial Development Authority and the federal Small Business Administration. The group itself also made a substantial investment of private capital and assets to assist in the reopening effort.
On September 3, 2003, the 123-year-old mill was reborn as American Eagle Paper Mills. Ferner is proud to report that the mill currently employs many people in the Tyrone community. “About half of our roughly 220 employees live in the Tyrone area, and the balance within a 25-30 mile radius.” The mill has triumphantly boosted the local economy in Tyrone as well.
Equipment and capacity
According to Ferner, the former owners of American Eagle (Westvaco) maintained the existing equipment well in the 90s. Since the reopening, the owners have invested $8 million in new equipment and upgrades to existing equipment. The new equipment includes paper machine upgrades, a winder, a precision sheeter and headbox upgrade. “We have increased our production and added new product lines from the upgrades and new equipment.” says Ferner, which explains why the company has managed to develop and maintain its customer base.
This mill has the capacity to produce approximately 90,000 tons/yr of printing and converting papers. Up to 30% post consumer is available for any product it manufactures. The product line includes 100% recycled, 50-80 lb offset (smooth-vellum), 50-80 lb 30% PCW Offset (smooth-vellum), 7PT, 30% PCW reply card (gurley + non), 9PT, 30% PCW, 20 - 28 lb recycled envelope and 20 - 28 lb, 30% PCW envelope. The machinery and capacity includes two fourdrinier paper machines, PM 4 84”, 75 tons/day capacity, BW range 50 -120 lb, PM 3 152”, 175 tons/day capacity, BW range 50 -120 lb.
Location, location, location
American Eagle boasts a great location for distribution. The company ships its products almost exclusively by truck, but they also use rails. Regional shipping within a 300-mile radius keeps carbon footprints as low as possible. The mill is located next to a trout stream, which allows American Eagle to supervise and utilize those waters that flow around its border as a closely guarded renewable resource. It also maintains several springs used in the papermaking process.
Central Pennsylvania is a rich area for paper usage. “Other plants nearby the Tyrone, PA, facility,” Ferner says, “include two envelope plants, consumer products, direct mail and a commercial printing plant. It’s a great location for distribution.” Ferner shares that many environmental companies use their products, which helps them stay green. “Our future is in recycling, sustainability, being green and environmentally sound.”
According to American Executive, the reopening of American Eagle has had a booming effect on the town of Tyrone. A 2005 report published by The Daily Herald says that nearly $50 million was put into the local economy in 2004. The report says that the positive cash generated to Pennsylvania businesses was about $20,341,000. The report goes on to say that the mill’s economic impact statement detailed that about $7.5 million went to salaries and benefits that year.
Secrets of success
“Our secret of success,” shares Ferner, “is quality, service, and building relationships.” The company prides itself on developing and maintaining relationships within the industry. Ferner and the others consider themselves to be the ultimate 100% recycling fine paper plant in the country.
“When we first started this we wanted to get people back to work.” And get people back to work, they did. Thirty percent of the laid off employees were back at work when the mill reopened.
Tyrone, the small town about 100 miles east of Pittsburgh, has been in the paper production business since the 1880s, when the first mill was opened, and then acquired by Westvaco in 1889. The mill ran successfully under Westvaco, until the plant closure in October of 2001. At the height of its production, Westvaco produced about 100,000 tons of coated and uncoated paper a year and made several investments to make the mill profitable.
Recycling – the heart of American Eagle
Recycled paper generates a 58% water savings in the manufacturing process and a 65% savings in energy use, versus making paper from virgin fiber. American Eagle’s papermaking process starts with recovered fiber. Each year American Eagle purchases 95,000 tons of recovered paper including waste paper and other recovered fiber such as misprinted cups, ice cream containers, mail envelopes and catalogs. American Eagle also processes other poly-laminated food and pharmaceutical packaging, undelivered mail and sorted office waste in the deink/de–poly system.
Up to 36% of US landfills are comprised of paper products. As a result, and to remain “green” recycling paper has become more important than ever. “Recycling is our niche business,” Ferner says. By efficiently creating tens of thousands of tons of recycled paper each year, American Eagle is hard at work keeping usable materials out of landfills by reusing recovered fiber from customers and other converters. “We are the ultimate recycling fine paper mill in the country,” boasts Ferner.
American Eagle is the only mill in the country that has the ability to separate poly from fiber to make commercial printing paper grades. The process of separating poly/plastic from fiber involves high consistency pulping, followed by a series of perforated and slotted screens with progressively smaller hole and slot openings. The company also incorporates forward and reverse cleaning and a deinking process, which uses a proprietary, environmentally friendly chemistry.
The prosperity of American Eagle is not without its difficulties. “The biggest obstacle has been higher priced materials.” Ferner continues, “Competition for fiber outside the country has been intense over the past two years.”
There were many skeptics in the industry that doubted American Eagle Paper Mills would be able to pull off a restart of the Tyrone, PA, mill. Here it is, five years later, and the skeptics have fallen by the wayside. American Eagle is flourishing, and they are doing so in a very environmentally sound way.
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