State waits on rival in bid to keep mill

Arkansas is fighting against a Wisconsin incentive package valued at up to $115 million to keep a KimberlyClark mill in Conway open, the leader of the Arkansas Economic Development Commission said Friday.

Two weeks ago, KimberlyClark told its 350 employees in Conway that it is considering closing the plant.

At the time, KimberlyClark had not made a decision on whether to keep the plant open, said the company’s spokesman, Terry Balluck. A decision still has not been made.

Kimberly-Clark said in January that it would eliminate 5,000 to 5,500 jobs — about 12 percent to 13 percent of its employees — and close 10 plants by the end of 2020 in an effort to lower costs worldwide. Kimberly-Clark expects the restructuring to cost $1.7 billion to $1.9 billion and to affect the company in all its major global areas, according to its regulatory filings.

Two of the plants it considered closing are in Wisconsin, which would cut 600 jobs, Kimberly-Clark said. One is a sister plant of the Conway facility, making similar products, Mike Preston, executive director of the commission, said.

The Wisconsin House approved a bill in February that provides a package worth up to $115 million over 15 years to keep the two plants. The Wisconsin Senate has not voted on the bill, which is supported by Gov. Scott Walker.

A published report on Tuesday indicated the union at the Wisconsin plants had voted for a new collectivebargaining agreement, giving concessions to the company. After the vote, the report said Kimberly-Clark would accept the state’s incentives if approved by the Senate.

Arkansas’ incentive package depends on how things

shake out in Wisconsin, Preston said.

The state will submit an incentive package to Kimberly-Clark, Preston said, but he declined to provide details of the offer.

“We’re still evaluating [incentives],” Preston said. “We evaluate on a cost-benefit analysis. Obviously we don’t just want to throw money out the door. We want to make sure there is a return on investment.”

Gov. Asa Hutchinson has been in touch with top executives with the Dallas-based Kimberly-Clark, making his case for the state, Preston said.

“Right now we’re waiting to see what feedback we get from the company,” Preston

said.

The state would do the same due diligence if it were trying to recruit Kimberly-Clark to build a new plant in Conway, Preston said.

“But we have to look at this as a retention project,” said Preston, referring to the 350 employees at the Conway plant. “When you’re looking at something like this, that’s 350 jobs so that’s 350 families depending on that income already. The stakes are higher.”

It’s a difficult situation for every party involved, including the company, said Jamie Gates, executive vice president of the Conway Chamber of Commerce.

“It’s [a situation] that is not completely within our control,” Gates said. “But we do hope by doing our jobs well, maybe if we can’t control the outcome we can influence it.”