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$50,000 COMMERCE GRANT AWARDED TO FORMER EMPLOYEES OF C.A. REED TO STUDY POSSIBLE EMPLOYEE PURCHASE OF PLANT

 HARRISBURG, Pa., Aug. 30 /PRNewswire/ -- State Commerce Secretary Andrew T. Greenberg today announced the approval of a $50,000 grant that will enable former employees of C.A. Reed Co., a paper products manufacturer in Williamsport, to explore a buy-out of the plant.
 The grant from the Commerce Department's Employee Ownership Assistance Program (EOAP) is being awarded to the Williamsport Converting Employee Group, which comprises former employees and managers interested in purchasing the plant.
 In January, C.A. Reed's parent company, James River Corp., announced plans to close the Williamsport facility and consolidate operations at its headquarters in Indianapolis. C.A. Reed employed 335 workers at the Williamsport plant, which manufactured paper products and paper party favors until it closed in early July.
 "This grant will help former C.A. Reed employees make a detailed study of the possible purchase of the plant," Greenberg said. "It also continues the Commerce Department's commitment to get this facility back in operation and restore these important jobs."
 Earlier this year, the department awarded a $5,000 pre-feasibility grant to study the possibility of employee ownership. The pre- feasibility study found that a market exists for supplying private label paper products to established companies for resale. The current EOAP grant will be used to develop a detailed business plan.
 Employee Ownership Assistance Program funds are used to examine the possible employee purchase of new, expanding or troubled businesses interested in sharing ownership with employees.
 /delval/
 -0- 8/30/93
 /CONTACT: Dennis V. Curtin of the Pennsylvania Department of Commerce, 717-783-1132/


CO: Pennsylvania Department of Commerce; C.A. Reed Co. ST: Pennsylvania IN: SU:

MP -- PH011 -- 7134 08/30/93 14:02 EDT
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Publication:PR Newswire
Date:Aug 30, 1993
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