Wild week for MeadWestvaco

MeadWestvaco is considering closing a Raleigh “Center for Packaging Innovation,” and relocating the facility to Richmond, the company’s corporate headquarters. The research center’s 140 employees were informed of the potential move a few weeks ago, and told an ultimate decision would be made in early March.

The recent theme for the company has been cost-cutting and consolidation, and a year ago MeadWestvaco announced its plan to lay off 2,000 workers and, close or restructure 12 to 14 facilities.

Four years ago when the company chose Raleigh for the location of the center it would potentially gain $5.19 million in state incentives based on a $14 million investment in the facility. In those four years the company failed to reach its hiring targets, and received none of the incentives.

From the News and Observer article:

“MWV is studying this option as a way to leverage efficiencies and maximize space in our new headquarters building in Richmond,” spokeswoman Jennifer McMahon said.

The savings of closing the plant might come in handy as MWV faces a lawsuit from Mutual of Omaha for allegedly infringing on the insurance giant’s rights to the phrase “Wild Kingdom” for commercial use.

MWV released a calendar entitled “Earth’s Wild Kingdom,” which Mutual alleges violates a trademark they’ve held on the phrase since 1963.

From the Omaha World Herald article:

Mutual maintains that Mead’s Wild Kingdom calendar violates Mutual’s trademark and service mark protection of the term and uses pictures of some of the same animals as the 2010 “Mutual of Omaha’s Wild Kingdom” calendar, including penguins, turtles and giraffes.

Mead’s use of the term is likely to cause confusion and mistakes and to deceive customers, Mutual said, and any problems with the Mead calendar could reflect badly on the insurance company.

The company asked the court to ban Mead from using “Wild Kingdom,” to pay any profits plus unspecified damages and to destroy merchandise bearing the words.

Wait, 2009 was a good year for downtown projects?

It’s that time of year when business people reflect on the year and toast to a better 2010.

Developers and other real estate professionals gathered at the newly renovated Richmond CenterStage for the second annual downtown real estate year in review, sponsored by Venture Richmond.

Speakers outlined more than 40 completed and ongoing projects underway in and around the central business district. Read more

Greetings from MeadWestvacoville

MeadWestvaco isn’t just making paper and plastic products anymore. Now they are getting into real estate development.

The Richmond-based company announced plans to transform a 78,600-acre tract of timberland outside of Charleston, S.C., into a master-planned community.

From the Charleston Regional Business Journal:

“These are places where people can live, work, learn and shop in close proximity,” said Ken Seeger, president of MeadWestvaco’s Community Development and Land Management Group.

The blueprint calls for preservation of 75% of the property as largely undeveloped green space that could be used for farming, hiking, biking, hunting, fishing and sparse development. The other quarter of the property is slated for a cluster of small towns separated by green space and intertwined with walking trails and parks.

Those communities will include educational and work opportunities and a range of housing types, Seeger said. The project is slated for two industrial parks, one each in Dorchester and Charleston counties.

The build out could take up to 50 years, according to the article.

The proposed community has a web site with a little bit more information:

For almost 300 years, East Edisto has been used for farming of one kind or another.  Under MWV’s ownership, we’ve grown pine trees to supply local mills.

Recent improvements in technology now allow us to grow more wood on fewer acres.  So, we’ve been looking at East Edisto in a new way: as an opportunity to be part of a planning process that helps manage the Charleston region’s growth, while creating new sustainable communities that remain true to the beauty and character of the Lowcountry.

The Herd: Promotions and New Hires for 10.28.09

Firms hiring/promoting employees include some of the area’s biggest employers, and some from financial services and law.

Financial Services:
Meredith W. Briggs has recently joined Heritage Wealth Advisors as a senior associate. Previously, Briggs was a financial consultant with AXA Advisors, where she worked with clients in the areas of investment management, retirement planning and risk management. Briggs received her undergraduate degree from Duke University and became a certified financial planner in 2009. Read more

CenterStage, Inc.

The new downtown performing arts venue, Richmond CenterStage, opened with a lot of fanfare this weekend, selling out the almost 1,800 seats for its first performance.

The theater complex is funded by a combination of public and private donations, but a large share of it is funded by donations from Richmond-based corporations including Dominion, Altria and MeadWestvaco. Read more

MeadWestvaco teams with Albermarle to scrub the air

MeadWestvaco and the formerly Richmond-based Abermarle Corp.  are teaming up to create a product targeted to power companies facing pressure to clean up their act.

(Albermarle was spun off by Ethyl Corporation in 1994 and has since moved to Baton Rouge, La.)

The product is activated carbon, which is a black powder that can be used by coal-fired energy plants to remove mercury from emissions. Federal regulations require mercury emissions to be below certain standards, but some states are beginning to impose even stricter limits.

Concern over mercury pollution has been stepped up since the release of a federal report that found traces of the chemical in every fish it sampled, and a quarter of fish had dangerously high levels.

The activated carbon is made from processed sawdust produced as a byproduct by MWV mills and bromine, of which Albemarle is a leading producer. The sawdust is being collected from mills in Virginia and Kentucky.

From the Post & Courier in Charelston, S.C., where the MWV Specialty Chemicals division is located:

MeadWestvaco began manufacturing the black powder to serve the emerging market earlier this year in Kentucky and Virginia, near mills that provide sawdust. The dust is then processed to produce tiny particles that are porous like a sponge.

Albemarle provides bromine, which is mixed with the wood particles. The Baton Rouge, La.-based company will also market the activated carbon under the alliance. MeadWestvaco will handle the manufacturing.

The powder binds with and filters out mercury produced by burning coal before the mercury can be released.
Division president Robert Beckler said growing demand could double the company’s production of processed saw dust.

Read more here.

MeadWestvaco repackaging business model

As far as big-name companies in Richmond go, MeadWestvaco seems like an island of stability in a hurricane of woe.

On July 29, it announced second quarter net income of $125 million or 72 cents per share, up from $56 million or 33 cents per share for the period a year ago. (You can read more about the quarterly results here.)  Revenue was lower than last year, but the company was more profitable. Read more

MeadWestvaco cutbacks have global impact

MeadWestvaco, the Richmond-based packaging company, announced Monday that it is cutting 80 jobs at its manufacturing plant in Hemer, Germany.

The layoffs are part of a restructuring plan, which the company announced in January. The company plans to lay off 2,000 employees worldwide, or 10 percent of its workforce. The cost-cutting plan is expected to be completed in January. The resulting savings are projected to be $25 million before tax.

The company stated at the time that the restructuring was a direct result of diminished consumer demand for products that carry their packaging.

The German plastics plant will specialize in home and garden sprayers while other product lines are moved to a plant in Wuxi, China.

President Jim Buzzard said in a statement: “We are improving MWV’s immediate performance and long-term strength in the Home & Garden business by making clear determinations about which product lines have growth potential and those that are less attractive in the future.”

Germany isn’t the only place the company is making cuts.

Last week, it was reported that MWV eliminated 100 jobs at its Chateauroux, France, manufacturing plant.  According to the report, an agreement presented to the trade union there was rejected and resulted in a three-day hunger strike for higher severance pay. That plant employs 247 workers.

Earlier this month, MWV laid off 65 workers at its office products plant in Kenosha, Wisc., and in May the company announced that it was closing its beverage packaging plant in Wilmington, N.C., affecting 105 employees.

In January, the company laid off 75 corporate positions at its Henrico headquarters.

But in some cases, MWV facilities are expanding. In May, the company tripled the size of its distribution center in Lofton, Va.

CEO pay falls at MeadWestvaco

The chairman and chief executive at MeadWestvaco received $6.7 million in compensation last year, including $68,000 for home security and several thousand for the charity of his choice, according to regulatory filings.

Not a bad chunk of change, but it’s 25 percent less than the $8.88 million he took home in 2007. Of his total compensation, John Luke, the 60-year-old chairman, earned a salary of $1.06 million. The rest was in stock and other compensation.

Publicly-traded companies must disclose how much their executives are paid in filings with the SEC. Two weeks ago, Richmond BizSense looked at the statements for Media General to learn that the chief executive of that company, Marshall Morton, earned about $2.8 million in 2008. You can read more about that here.

Like their leadership brethren at Media General, executives at MeadWestvaco did not receive performance-based incentives, according to the filing. MeadWestvaco produces packaging and paper products, and it suffered like the rest of the economy. It has recently announced that is closing or reducing the size of a handful of plants.

E. Mark Rajkowski, chief financial officer, brought in $1.87 million, of which $577,840 was salary pay. His overall compensation was a million more last year.

James A. Buzzard, the president, earned $690,510 in salary with a total compensation of $3.2 million.

Wendell Willkie earned a salary of $479,120 for a total of $1.57 million, down slightly from last year.

Mark S. Cross earned a salary of $513,750 and had a total take of $1.2 million.

Some other neat details: Each executive was reimbursed somewhere between $1,425 and $11,678 for financial planning. MeadWestvaco also chipped in up to $5,000 to a charity of the executive’s choice. And the company budgeted $3,000 for an executive health screening for all the executives listed.

It also pays to be on the board at MeadWestvaco: Board members received about $145,000 for meeting six times.

For their accounting efforts, PricewaterhouseCoopers charged $7.2 million.

Innsbrook Empties Out: Vacancy Rate Poised to Double

Nearly 1 million square feet of class A office space in the Innsbrook area could be vacated as locally-based corporations downsize, driving down rental rates in the area but potentially making the Richmond area more attractive to corporations considering moving here.

Almost every office building at Innsbrook has a “for lease” sign, and the situation is going to get worse before it gets better. After declaring Chapter 11 bankruptcy Nov. 10, Circuit City will probably consolidate from two buildings to one on Mayland Drive, giving back 250,000 square feet. Read more

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