Wausau Paper Corp. – ‘8-K’ for 7/6/05 – EX-99.1

On:  Wednesday, 7/6/05, at 5:03pm ET   ·   For:  7/6/05   ·   Accession #:  916480-5-106   ·   File #:  1-13923

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Wp Form 8-K                                            3     15K 
 2: EX-99.1     Wp Exhibit 99.1 - News Release                         2      9K 

EX-99.1   —   Wp Exhibit 99.1 – News Release

EX-99.1
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                                              Exhibit 99.1
News Release - July 6, 2005           
Wausau Paper    

WAUSAU PAPER ANNOUNCES PULP MILL CLOSURE  

MOSINEE, WIS...JULY 6, 2005... Wausau Paper (NYSE:WPP) today                    
announced plans to permanently close the sulfite pulp mill at its Brokaw,       
Wisconsin, papermaking facility.  The closure, which is due to the unit's high  
cost of operation and capital investment requirements related to aging plant    
and equipment, is expected to take place by the end of 2005.  Papermaking       
operations at the Central Wisconsin facility will be unaffected by the closure  
as internally-generated sulfite pulp will be replaced by market pulp sourced    
from existing suppliers.  The closure is expected to reduce the company's       
average pre-tax cash cost of operation by approximately $4 million annually,    
with avoided capital investment adding another $4 million average annual        
benefit.                                                                        

In 2004, the pulp mill produced 80,000 tons of sulfite pulp, or approximately   
half of the fiber requirements necessary to operate Brokaw's four paper         
machines.  The shutdown will affect approximately 60 permanent jobs.  Pre-tax   
closure charges are estimated to be approximately $44 million, consisting       
primarily of non-cash charges related to the write-down of long-lived assets    
and inventories.  The charges also include one-time termination benefits and    
other associated costs.  Pre-tax closure charges of approximately $9 million,   
$23 million, and $11 million are expected in the second, third, and fourth      
quarters of 2005, respectively.  The remaining pre-tax closure charges of       
approximately $1 million are expected to be incurred during the first two       
quarters of 2006.                                                               

"We thank our employees for their tireless efforts in reducing operating costs  
at the Brokaw mill," said Thomas J. Howatt, president and CEO.  "While these    
efforts yielded substantial benefit, they were unable to offset on-going        
capital requirements and the dramatic increase in pulpwood, energy and chemical 
prices over the last several years," continued Mr. Howatt.  "This decision not  
only improves the competitive position of the Brokaw mill but also enhances job 
security for remaining employees."  Brokaw employs approximately 490 employees, 
excluding the jobs affected by the pulp mill closure.                           

Including the $0.12 per share after-tax charge related to the sulfite mill      
closure, the company said it expects second-quarter net losses of approximately 
$.06 per share, which is consistent with the Company's earlier guidance for the 
second quarter.                                                                 

Wausau Paper produces fine printing and writing papers, technical specialty     
papers, and "away-from-home" towel and tissue products.  To learn more about    
Wausau Paper, please visit www.wausaupaper.com.                                 

SAFE HARBOR UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: The     
matters discussed in this news release concerning the Company's future          
performance or anticipated financial results are forward-looking statements and 
are made pursuant to the safe harbor provisions of the Securities Reform Act of 
1995.  Such statements involve risks and uncertainties which may cause results  
to differ materially from those set forth in these statements.  Among other     
things, these risks and uncertainties include the strength of the economy and   
demand for paper products, increases in raw material and energy prices,         

EX-99.1
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manufacturing problems at Company facilities, and other risks and assumptions   
described in Item 1 of the Company's Form 10-K for the year ended December 31,  
2004.  The Company assumes no obligation to update or supplement forward-       
looking statements that become untrue because of subsequent events.             

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
Filed on / For Period End:		7/6/05		1					4
		12/31/04		2					10-K,  11-K,  4
									List all Filings