PORT ANGELES — Is Nippon the last of a dying breed of paper makers in the United States?
To put it simply, yes, according to mill Manager Harold Norlund.
Nippon Paper Industries USA’s Port Angeles mill is the only manufacturer of paper used to make telephone books left in the nation after a mill in Maine closed in April, he said.
But that’s nothing, Norlund feels, that Nippon, which still faces competition from Canadian plants, should celebrate.
“It’s not a fun time to be in the paper business,” said Norlund, who called the closure of the Katahdin Paper Co. mill in East Millinocket “concerning.”
Toronto-based Brookfield Asset Management’s closure of the mill put 450 people out of work. The company is making plans to dismantle the mill unless the state comes to its aid.
David Fishman, spokesman for directory industry association Local Search, said he could not confirm that Nippon is the only phone book paper manufacturer in the United States, but he provided the names of three other manufacturers, which all list their directory paper making facilities as being located in Canada.
The vice president and general manager for one of those companies, Catalyst, said that Nippon is their only U.S. competitor for that product.
Paul Gordon of the British Columbia-based company said demand for directory paper is “seriously on the decline” since more people are using the Web to find phone numbers and businesses.
“We’re in a bit of a war of attrition right now,” he said.
Norlund said he agrees with that statement.
“The best one wins,” he said. “That’s a tough position to be in.”
Directory paper makes up 75 percent of Nippon’s production in Port Angeles, Norlund said. He estimated that demand is down 18 percent over the last year.
The 90-year-old mill also makes paper for other print media, including the Peninsula Daily News. It employs about 200 people.
The other paper mill on the North Olympic Peninsula — Port Townsend Paper Corp. — manufactures heavier kraft paper.
Local Search President Neg Norton said demand is down 35 percent nationwide over the last five years.
Norlund said he expects demand to continue to decline for at least the next three years but added that Nippon is not ready to throw in the hat.
“We’re still here,” he said, adding that Nippon continues to invest in the facility, including its $71 million biomass cogeneration project. “We’re determined that we are going to make it.”
While it’s nothing new that the Web is eating away at demand for paper products, the phone book industry has recently found a new challenge.
Frustrated by the large amount of phone books that go unused, the cities of Seattle and San Francisco have enacted laws meant to reduce the number of directories that simply get tossed.
Seattle this year initiated a 14-cent fee for every book delivered and started an “opt-out” program for residents who wish to not receive one.
San Francisco went a step farther this month by banning the unsolicited distribution of Yellow Pages.
Local Search is challenging both actions in federal court.
Norton said he feels the industry is being unfairly targeted, adding that phone books aren’t the only form of unsolicited print media.
“We feel there is some violation of our First Amendment rights,” he said.
Norlund said he shares the association’s concerns.
“If you restrict people’s ability to use a product, you will legislate it away,” he said. “And the jobs that go with that.
Norton said the association isn’t opposed to people choosing to not receive the books, noting that it already provides that option through the website, www.yellowpagesoptout.com.
Norton said he sees phone books as still being relevant in the years to come but added that the association is encouraging its members to use both print and online media.
“The puck is moving toward digital media,” Norton said. “In the meantime, print is going to chug along and work well for a majority of people.”
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Reporter Tom Callis can be reached at 360-417-3532 or at tom.callis@peninsuladailynews.com.
