Brady Carlson

Kimberly-Clark Will Consider State Subsidy

Open to state incentives, the company says, now that union has agreed to concessions.

By - Jul 25th, 2018 12:30 pm


Kimberly-Clark Corp. says it’s open to negotiating state incentives to save at least one of two Wisconsin facilities it plans to close.

The consumer products giant announced its stance on the Cold Spring facility following a new labor agreement ratified Monday night by United Steelworkers.

“With the ratified agreement, the company will advise the State of Wisconsin that it is now in a position to commit to using the incentives if the proposed legislation is passed and an agreement with (the Wisconsin Economic Development Corp.) is reached,” spokeswoman Brook Smith told the Appleton Post-Crescent.

The president of the local union, Dave Breckheimer, said the new agreement provides Kimberly-Clark with concessions aimed at keeping Cold Spring in operation.

Kimberly-Clark said earlier this year it planned to close that facility and the Neenah Nonwovens factory, eliminating 610 jobs as part of a global restructuring.

A tax break package aimed at keeping the Kimberly-Clark facilities won approval from the state Assembly this year, but not from the state Senate.

Senate President Roger Roth, who represents the Fox Valley district where the facilities are based, said he hopes the Senate will return to the Capitol to approve the package.

He said the incentives are appropriate because they will have benefits for the entire state.

“These kinds of jobs don’t come back in this day and age,” Roth said. “This is important to the foundation of the economy right here in the Fox Valley, but to a larger sense, the paper industry is vital to Wisconsin and that’s why I think it makes sense in this application to offer tax incentives.”

Gov. Scott Walker hailed Kimberly-Clark’s announcement.

“The agreement reached between Kimberly-Clark and the United Steelworkers is outstanding news,” he said in a statement. “We look forward to working with Senate leaders and the company to keep hundreds of good-paying, family-supporting jobs in the Fox Valley.”

Senate Majority Leader Scott Fitzgerald’s office said Fitzgerald, “plans to speak next week with his caucus members, Minority Leader (Jennifer) Shilling and Governor Walker to determine the most appropriate and realistic path forward for the Senate.”

Kimberly-Clark Says It’s Open To Talks On State Incentives Package was originally published by Wisconsin Public Radio.

Categories: Business, Politics

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