By Mike Boyer
The Cincinnati Enquirer

Smart Papers LLC, one of Hamilton's largest employers, has agreed to sell its all-purpose litho product line to MeadWestvaco Corp., eliminating about 60 jobs at the plant over the next two months.

Financial terms weren't disclosed. But Smart, created in 2001 from the former Champion International paper mill, said it would continue to make the machine-coated one-side paper through April and do some converting and distribution of the product through July.

The all-purpose litho product is one of the oldest products made at the Hamilton mill, dating back 90 years. It is used to print labels, direct-mail items, book jackets and other consumer packaging.

Stamford, Conn.-based MeadWestvaco, North America's second-largest coated-paper maker, said the acquisition would allow it to bolster its full line of machine-coated one-side products, including its market-leading Sterling Ultra and Sterling Litho products.

"It's unfortunate. It's not anybody's fault, but I can't compete,'' said Dan Maheu, chief operating officer of Smart Papers, which will still employ about 500 in Hamilton after the cuts are made. He said the Paper, Allied-Industrial, Chemical and Energy Workers International Union, which represents the workers, was notified of the cuts.

"Our competitive advantage is that we are the manufacturer and brand marketer of premium printing papers which are well differentiated in the marketplace," said Smart Papers CEO Tim Needham. He said the company concluded the litho product was no longer a strategic fit.

Privately held Smart couldn't compete in the machine-coated label grades that are increasingly commodity products, Maheu said.

"Those still in the business have their own pulp mill (like MeadWestvaco) or are in Asia," he said. Maheu said product prices are down 10 percent while raw materials costs are up 30 percent over the last couple of years.

Smart plans to keep the paper machine now used to make the litho product, and is studying ways to use it to expand capacity of its well-known cast-coated products, Kromekote and Kromekote Litho.

Needham said Smart also would continue to increase production of other printing papers for the North American market and look for strategic acquisition opportunities.

Smart's sales exceed $100 million a year.

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E-mail mboyer@enquirer.com