Great Lakes Tissue ownership changes hands

2022-04-21 10:27:01 By : Mr. Mike Chen

CHEBOYGAN — Late last week, the ownership of Great Lakes Tissue factory changed hands, with the new ownership group looking to create a positive working environment, while doubling efficiency and output of products.

"There were a lot of ins and outs for this negotiation that we navigated and reached mutual agreement on," said Kip Boie, a member of the Great Lakes Tissue Group. "Overall, we're just excited. We're just really excited."

As of Thursday, March 31, Great Lakes Tissue and the stock of the company has been bought by Great Lakes Tissue Group, a group of investors who are partnering with Boie. The transfer of ownership includes all of the buildings associated with the tissue plant, with the exception of the warehouse building, which is currently being leased, with the option to buy.

The new investment group plans to keep all the employees who are currently working for the tissue factory, adding several key positions, as well as hiring a number of new employees.

Boie said the plant is hiring and welcomes anyone interested in working to stop in and apply, including previous workers. There are several shift options available.

An outside consulting firm — Dr. Gordon Nameni and August Brown — will be coming in and looking at the operations at the plant and make suggestions as to how things can be improved and made more efficient. This firm will also help the plant figure out a use for all the scrap poly — a plastic-like coating that is stripped off the material used at the plant for the toilet paper — whether it be to create biofuel to be burned at the plant, or pelletized and sold to another company. There could also be a way for the product to be recycled.

The investors said they see a diamond in the rough with the factory and have plans of polishing it and making it shine.

Boie said the goal of the Great Lakes Tissue Group is to buy and sustain companies in cities such as Cheboygan, grow them and help create more jobs in the community. The investors also want to leverage on the legacy of the previous owners.

"Bring in a fresh set of eyes, a fresh set of capital, and invest and grow the business," said Boie. "And create a more sustainable business model. That will enable us to employ more of our neighbors."

Tori Beckett will continue to lead and oversee the company and its day-to-day operations. Boie will be the president and CEO of the company and he will work with Beckett and her leadership team.

"I have this people-centric leadership model in my head. That model starts with understanding people's skills and abilities," said Boie. "The idea is that everybody contributes to the company, whether you're a big shot president, or you're running the paper machine. Everybody is a leader in the organization."

Boie said they are trying to move away from words like "employee" and "supervisor" or "manager." Everyone will be an associate and help to lead their portion of the organization. The associates will also have the power to raise their hand and offer suggestions as to how they could be more efficient at their job and how to help create a better business model for the entire company. All of the current employees learned of this new approach at an all associates meeting with the new investors.

"Everybody matters in this organization," said Boie. "Tell me is an open door. I might say no, I might say let me think about it, I might say next quarter, or whatever. But I will always treat every associate in the business with respect, and I expect every associate in the business to treat their peers and everyone else in the organization the same way. It's human leadership, really."

Boie's last corporate role was working for 13 years for Barry-Wehmiller, under Bob Chapman. It is Chapman's leadership model that Boie is modeling his business models after.

The new investors have plans to double the production of products at the tissue factory, then double it again.

"Investments, we have one paper line now. We're going to invest $6-$8 million probably in upgrading that machine," said Boie. "That will make it more efficient and create better quality paper."

The plans for the tissue factory also includes putting over $1 million into repairing the roof of the facility. Then a second paper line will be added to the plant, with an investment of around $60 million, and should be up and running within the next five years.

"That's where the second doubling comes in," said Boie.

Boie said the City of Cheboygan, Michigan Economic Development Corporation and North Lakes Economic Alliance have all welcomed the new investors with open arms and have helped get some grant funding lined up from multiple entities to help with the improvements to the factory.

"We're going to invest five times what we paid for the business, at least," said Boie. "And we're going to take advantage of those programs that government has to stimulate job growth and stimulate a stable economy."

The inside of the factory will also be cleaned up and organized, along with new paint on the walls and floors. The tissue factory will also work with the city's Downtown Development Authority and the Cheboygan Area Arts Council to help improve the aesthetics of the building and the corridor into downtown.

Boie said the tissue factory and its leadership also plans on being an active member of the community, advertising at local events, contributing where needed and encouraging local businesses to purchase their products for their establishments.

"We are here to support the community, so please come support us also," said Boie.

Cheboygan City Manager Dan Sabolsky said in speaking with Cheboygan Mayor Les Tebo, Tebo believes the new investment into the tissue factory is the biggest event to hit Cheboygan since the Proctor and Gamble plant closed.

"He feels this is another sign of the rebirth of our town," said Sabolsky.

Boie said the tissue factory plans to maintain its good environmental record in regards to the use of the water from the Cheboygan River, and could potentially install another hydrogenerator to help power the plant. The goal is to be more energy efficient, working toward becoming energy independent.

Contact Features Writer Kortny Hahn at khahn1@gannett.com. Follow her on Twitter at @khahnCDT.