NATCHEZ &045; Executives of the paper products corporation wanted out of a certain business, one that faced a declining market for its product.

Employees were determined to do what they could be make sure their location wasn’t in jeopardy.

So they went about forming an employee stock ownership plan.

Employees of International Paper’s Natchez mill are working to set up an ESOP in order to purchase that facility, which is set to close later this summer.

Except the above example is not IP’s Natchez mill &045; it’s Appleton Papers of Appleton, Wis. Once a subsidiary of AWA, a company based in Europe, Appleton Papers is now owned by its 2,500 employees through an ESOP.

Appleton Papers, with nearly $900 million in annual sales, is the world’s leader in carbonless and thermal papers, according to its Web site. The company was even featured in the June issue of CFO Magazine for its ESOP.

Appleton Papers employees determined in February 2001 to pursue an ESOP after AWA tried unsuccessfully to sell the location, said Bill Van Den Brandt, manager of corporate communications.

In hindsight, it was an impressive feat, Van Den Brandt said. &uot;There was great deal of enthusiasm on management and employees,&uot; he added.

He can quote the dates by heart: the process of forming an ESOP started on Feb. 14, 2001, and closed on Nov. 9, 2001.

&uot;Between that time, we had to educate a lot of people on what an ESOP was, including some in management, so they could decide if this was something they wanted to invest their money in,&uot; he said. &uot;People were voting with their money.&uot;

That was true even though Appleton Papers already had a culture that encouraged employees to think of themselves as owners of the company &045; even though that was not yet true.

Employees held an election to determine whether to pursue the ESOP.

In addition, there were a whole series of government regulations and filings with the SEC (Securities and Exchange Commission),&uot; Van Den Brandt said.

&uot;We also had to convince our parent company, based in Paris and London, and many of them weren’t familiar with the ESOP concept.&uot;

They also had to convince leaders &045; no small task, considering employees needed $100 million to buy Appleton Papers for themselves.

Those same workers ended up raising $107 million by rolling over their 401-Ks, Van Den Brandt said.

Two things distinguish Appleton Papers’ experience from that of IP’s Natchez mill, he said.

The first is timing. If employees had to convince lenders of the deal just a few weeks later &045; after Sept. 11, 2001 &045; it might not have gone through, Van Den Brandt admitted.

Also, the location was not in danger of shutting down. &uot;We were profitable, and we’re still profitable,&uot; he said.

However, the company is having to search for new materials to produce, given that the &uot;electronic age&uot; has reduced the need for carbonless paper.

&uot;We went into this knowing principal product is a declining product,&uot; Van Den Brandt said.

But according to him, Appleton Papers’ employees have had to adapt before and know it can be done.

&uot;It (the ESOP) took a tremendous amount of work &045; and a little luck,&uot; he said.