Longview, Washington-based Nippon Dynawave Packaging announced last week that its president would retire immediately and a temporary replacement had been named. Plus, its Japan-based parent company, Nippon Paper, disclosed plans to restart some NDP operations in December that have been suspended since a deadly white liquor tank implosion in May. Meanwhile, Washington’s Department of Labor & Industries cited NDP for a second safety violation unrelated to the implosion.
Leadership change
NDP President Matt Peerboom retired as of Nov. 3, and Senior Vice President of Finance Yusuke Mano was assigned to take over the position’s duties on a temporary basis. He and the rest of the company’s leadership team “will provide continuity for its employees and the mill,” according to an NDP statement.
Peerboom had planned to retire earlier this year but postponed so he could help lead the response and recovery related to the implosion, according to NDP.
“With employees back at the mill and meaningful progress made toward a return to operations, it is time for me to follow through on my original retirement plans,” Peerboom said in the statement. “It has been a privilege to lead Nippon Dynawave and work alongside the people who make this mill what it is.”
The majority of NDP employees were slated to return to work in mid-October, with subsequent returns on a staggered schedule. NDP previously agreed to extend pay through at least Jan. 17 for employees who haven’t yet returned to the largely idled pulp and paper mill.
The Association of Western Pulp and Paper Workers has worked with NDP since the incident to secure agreements for the facility’s employees. Following NDP’s announcement last week, the union released a statement recognizing Peerboom’s engagement during a difficult time and noting AWPPW would continue to work with the company’s new leadership.
Disclosing financial impacts and operations restart
In its earnings release on Friday, Nippon Paper disclosed that it lowered its financial outlook due to unforeseen events, including the NDP disaster in Longview and a July earthquake in Japan. The parent company hadn’t previously released estimates about financial impacts because “it was difficult to reasonably estimate the impact on the Group’s results,” according to a notice Friday.
The NDP incident resulted in losses that totaled 2.2 billion yen, approximately $14 million, as of Sept. 30. NDP is now expected to post a full-year operating loss of approximately 21 billion yen, approximately $133 million.
Notably, Nippon Paper disclosed that it aims to restart NDP mill operations in December. It will do this in phases using base paper and pulp that the company procures externally.
“We are cautiously optimistic about the progress toward restarting,” Josh Estes, spokesperson for AWPPW, said in a Monday email to Packaging Dive. “The company’s December target offers a sense of direction, while the situation remains fluid and significant work and challenges remain. Respecting that process means addressing those challenges as they arise, keeping workers meaningfully involved, and ensuring safety remains central to every decision.”
Nippon Paper also noted that it would fully cooperate with the various investigations into the incident. The federal U.S. Chemical Safety and Hazard Investigation Board expects to release its final report on the implosion in spring 2027. It provided a preliminary report in August suggesting NDP was aware of safety concerns with its tank wall prior to the implosion. CSB is an independent, nonregulatory federal agency and does not issue citations or penalties.
The Washington Department of Labor & Industries is the main enforcement authority for the NDP site. Its investigation report is due Nov. 22.
L&I issues citation
L&I also issued its second citation to NDP in roughly three months that is unrelated to the tank implosion. It launched both investigations just weeks before the May incident.
The $77,800 penalty relates to a drain failure that caused an approximately four-foot-deep sinkhole at the NDP mill. A worker stepped into that hole, which was full of pulp that was approximately 145 degrees Fahrenheit, according to L&I. Per the agency’s rules, NDP has 15 days from the date of citation issuance to appeal.
In August, L&I announced that it cited NDP for a separate safety violation also unrelated to the May imposion. That one stemmed from a facility worker reporting a broken valve handle on an aqua ammonia clarifier tank used to treat wastewater from the mill’s pulp and paper operations. The valve would not close because the handle was detached. That fine was for nearly $2,900.
Earlier that week, the Washington Department of Ecology cited NDP for 35 environmental violations related to the May tank implosion.
