Lawrence Paper plans plant expansion

Crews began $7.1 million worth of Lawrence construction in February, down significantly from 2001

A $2.4 million expansion at the Lawrence Paper Co. checked in as the largest construction project in the city during February, according to a recently released report.

Construction crews in Lawrence started $7.1 million worth of projects during February, according to building permit totals from the city.

The Lawrence Paper Co., 2400 Lakeview Road, is undergoing an expansion, worth .4 million. David Cavender loaded cardboard into a bottom lock machine in July at the company.

The 60,000-square-foot expansion at Lawrence Paper, 2400 Lakeview Road, isn’t expected to immediately add any jobs to the packaging company, which currently employs 325 people.

But Justin Hill, corporate secretary/treasurer for Lawrence Paper, said the project will allow the company to build upon one of its better performing business divisions.

The new space will be used as an area to receive merchandise that employees will then put into boxes or other packaging Lawrence Paper has produced at the plant.

“Basically the customer sends us the merchandise, and we actually put the merchandise in packaging for them,” Hill said. “That part of the business has been doing well and expanding, so we’re looking for more ways to do it.”

However, the company’s traditional box production business has struggled during the nationwide economic slowdown .

“Business has not been good,” Hill said. “From where I sit, we’re still in a recession. We really don’t have a clue when it will turnaround.”

The company has not had to reduce its work force during the economic slump, Hill said. Hill did confirm, though, the company has cut some shifts back to six-hour work days to compensate for the downturn in business.

The expansion project is expected to be completed in October, Hill said.

In related news, construction of single-family homes remained on pace to post numbers similar to last year. A total of 16 single-family houses, with an average value of nearly $147,000, not including cost of land, were started in February.

For the year, 31 new single-family houses have been started compared to 30 at this time last year. Last year’s single-family construction market was considered solid by most builders, with 305 new homes added to the city.

Duplex construction, however, is down significantly from year-ago numbers. City inspectors issued permits for 7 duplexes in February and have issued a total of 14 for the year.

That’s in contrast to the 40 duplex permits issued by the end of February 2001.

The drop in duplex activity, along with a lack of apartment construction, has the overall construction industry in Lawrence off to a slower start than a year ago.

Through February, city inspectors have issued permits for $13.94 million worth of construction projects, which compares to $31.25 million during the same period in 2001.

That doesn’t necessarily mean the Lawrence building industry is in a slump, though. Building totals for 2001 were the third highest on record, and this year’s $13 million start is on par with most years in the 1990s.