Ex-Graphic Packaging, now Mondi Bags, to close; few reasons offered

Local officials have confirmed that a New Philadelphia-based industrial paper and bag packaging plant, Mondi Bags USA, soon will be closing its doors.

The company, formerly Graphic Packaging, opened in 1972 and was purchased by the Mondi Group, an international corporation, in June. Company representatives could not be reached for comment.

Scott Robinson, president and CEO of the Tuscarawas County Chamber of Commerce, said one of the company’s local representatives informed him Tuesday that the plant will close.

Robinson said he does not know how many people are employed at the New Philadelphia plant or its official closing date.

“The only thing I heard from them was it was a corporate decision,” Robinson said. “It’s certainly frustrating to us in the economic development profession because we never find out about these things until a final decision has already been made. Of course, we feel for the employees and their families who are affected by this decision.”

“It’s a very upsetting thing,” said New Philadelphia Mayor Dave Johnson.

“For this just to come out of the blue with no indication, it was quite shocking. We were prepared this time if something happened. I offered help,” Johnson said. “I was point-blank told ‘no.’ ”

The company is not facing economic difficulties, according to a recent financial report released on the company’s website in August.

In the report, the Mondi Group’s chief executive, David Hathorn, stated that “The Mondi Group continues to deliver a strong performance, generating a return on capital employed of 16 percent.”

Hathorn also said their has been an increase of revenue in the United States as well.

Scott Reynolds, the Tuscarawas County director of economic development, said the company at one time employed between 100 to 200 people, but he is unsure of how many are impacted currently.

Reynolds joined Robinson and Johnson in stating that there should be resources available to the employees through Ohio Means Jobs Tuscarawas County.

“At this point, we’ve reached out,” said Amy Miller, resource center manager for Ohio Means Jobs Tuscarawas County.

Miller said her organization provides a rapid response program instructing employees on how to refresh their job search, utilize the Ohio Means Jobs database, and information on updating résumés. She said they also work in conjunction with the Ohio Department of Job and Family Services’ unemployment compensation group to guide people on how to sign up for unemployment and how it works.

Miller said the company has not yet responded, but employees are welcome to visit the local Ohio Means Jobs office, formerly the Employment Source at 1260 Monroe Ave. in New Philadelphia.

Reach Meghan at 330-364-8419 or meghan.millea@timesreporter.com

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