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Reprinted from: Green Bay Press-Gazette
http://www.greenbaypressgazette.com/

December 18, 2003

Paper industry may get boost from feds

Plan will create new research facility for area

By John Dipko, Press-Gazette Madison bureau
jdipko@greenbaypressgazette.com

MADISON - Amid concerns about competition and changing times, officials have their sights on a plan that could solidify Northeastern Wisconsin's future as a paper industry leader.

A proposed federal spending bill scheduled for U.S. Senate action next month includes $500,000 in grant funding to help the University of Wisconsin-Green Bay establish a research facility centered on new paper-related technologies.

The paper industry has a nearly $17 billion-a-year impact in Wisconsin but has lost 9,000 jobs over the past three years, according to the Wisconsin Paper Council, a Neenah-based trade organization. Paper and allied industries employ about 50,000 people in the state.

"The thinking is that traditional paper is not going to be an area of economic growth," UW-Green Bay Chancellor Bruce Shepard said.

"Ownership is moving abroad. We're not seeing capital investment in keeping traditional paper here. But we've seen an explosion in manufacturing in areas like high-tech paper and non-woven paper products. That looks to be the future growth in the paper industry."

The center, advocated chiefly by U.S. Rep. Mark Green, R-Green Bay, would develop exclusive new products or processes that can be transferred to the private sector for commercialization.

The funding, included in the $820 billion omnibus spending bill that the U.S. House passed Dec. 8, would cover costs for personnel and resources to weigh community interest in the center and devise a business plan, Shepard said.

Paper council President Patrick Schillinger said anything that can be done to improve technological advances in the paper industry in Wisconsin would be beneficial.

"That's an opportunity for our mills to be competitive by creating new products in the paper industry," he said.

Shepard said key players would include industries, UW-Green Bay, Northeast Wisconsin Technical College, UW-Stevens Point and its paper technology program, the Energy Center of Wisconsin, the U.S. Forest Products Laboratory and the WiSys Technology Foundation Inc., which supports research and educational programs at various UW campuses.

Location for the center remains uncertain, but leaders are considering somewhere downtown rather than at the UW-Green Bay campus on the city's far east side.

"It might be a good idea to have it downtown and closer to traditional paper, and it also would help us have a more visible presence at the center of Green Bay," Shepard said. "There have been no decisions, but I think that could have a lot of promise."

The center would be an anchor that lets paper companies not only improve what they do but also form start-up companies dedicated to commercializing the research, said Tom Still, director of the Wisconsin Technology Council.

Biotechnology research in places like UW-Madison, a top research institution, has helped make bioscience one of the fastest-growing industries in Wisconsin, according to a recent report by the Wisconsin Association for Biomedical Research and Education.

The state's 248 bioscience companies employed more than 19,000 workers and generated nearly $5 billion in sales in 2002, the report said.

"What we need to develop around the state are clusters for industries where a lot of people invest, and working together to cement the paper cluster is an important event," Still said.

Green spokesman Chris Tuttle said the lawmaker remains a chief supporter of the project even though he voted last week against the spending bill, as did 37 other GOP representatives. The measure passed 242-176.

"There was a lot of stuff in the bill that Mark didn't like, and does he regret having to vote against a bill that contained a lot of good things in the area? Yes he does," Tuttle said.

The funding will need to clear the U.S. Senate and be in the final spending bill signed by President Bush. The Senate is expected to take up the bill in late January.



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