Feb. 15--WEST POINT -- Since 1914, the giant paper mill on the Pamunkey River has sustained the town of West Point and adjoining counties with hundreds of well-paying jobs. The steam spiraling out of its boilers has symbolized prosperity.

So a collective shudder ran through the Middle Peninsula on Jan. 26 when the paper mill's parent company, Smurfit-Stone Container Corp., filed for Chapter 11 bankruptcy protection in an effort to restructure its heavy debt. The Chicago-based company owns 150 facilities, including a mill in Hopewell, two smaller plants near Richmond and a plant in Martinsville.

But the stakes are particularly high in West Point, population 2,800. The mill is by far the town's largest employer, with roughly 620 jobs. It accounts for nearly half the town's tax base and has donated generously to the community, said West Point Mayor Jim Hudson.

"What's happening now is a huge concern for us because of how important the mill is," Hudson said. "It's just a monster part of this town."

In recent interviews, several mill employees said their bosses have reassured them that the mill's strong production record puts it in good shape to survive any corporate reorganization, though demand for its products has shrunk. The mill produces components for cardboard boxes for a wide range of products.

"I think we'll be OK; this mill is going to be here," said David Forrest, a heavy-equipment operator from Richmond, leaving the mill after working some overtime. He said the West Point mill is among the most productive of the company's 14 mills.

But Forrest and others said they would not be shocked to see the mill change hands, as it has done twice since 2001. Jobs or benefits could be cut. "Everybody's worried if their job is going to be the one to go," said a clerical worker who asked that her name not be used.

As common as such worries are today, she said, they are new at the mill, which for 95 years has been the rock of the local economy.

Chesapeake Corp. opened the mill in 1914 to take advantage of West Point's location at the point where the Pamunkey and Mattaponi rivers meet to form the York. The mill quickly redefined West Point, which had been a resort town until fire destroyed its riverfront facilities. Chesapeake fed the mill with lumber from its vast timber holdings in the area.

The mill has provided jobs for generations of families from West Point and miles beyond. Sometimes, three generations worked there simultaneously, said Bobby Wilson, who retired after 43 years at the mill and whose two sons are employed there now.

"The mill used to be a place where if you went to work and kept your nose clean, you'd get a gold watch on your retirement," said Carlton Johnson, who runs The Million Dollar You barber and hair salon across from the mill. "But it hasn't been as stable since Chesapeake sold it" in 2001.

Johnson said his customers worry constantly about the bankruptcy, and he worries, too. "If the mill closed, I'd have to move out of town," he said. "It's a lifeline to a lot of businesses, including mine."

The mill seemed to be running full-tilt last week. A steady stream of log trucks rumbled in and out of the gates; the distinctively pungent paper-mill smell filled the air.

"They're still paying me, so I am not going to worry," said Chuck Berry, who drives a log truck out of Amelia County. He said the mill had promised to make good soon on a week's pay to him it missed in January around the time it filed for bankruptcy.

Smurfit-Stone employs more than 20,000 people in North America and Asia. It filed for bankruptcy protection in Wilmington, Del., in order to develop a financial reorganization plan. The company has been hit not only by reduced demand for packaging but by rising natural-gas prices. ------

Contact Bill Geroux at (757) 498-2820 or wgeroux@timesdispatch.com.

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