Federal Tax Cuts Spur Employee Bonuses and Equipment Investments at Kansas Company (Lawrence Paper Co)

The Lawrence Paper Company (LPC) announced Wednesday it will pay a special $500 bonus to each of its 300 employees and invest more than $5 million in new equipment because of the Tax Cuts and Jobs Act recently passed by Congress and signed into law by President Donald Trump.

During staff meetings this week at its plants in Hutchinson, Lawrence and Fremont, Nebraska, LPC President Justin Hill, Jr. told employees the new tax law may prove to have the greatest impact on them and their families, the company and the U.S. economy than of any bill passed in the last 30 years.

“Most, if not all of you are likely to see a decrease in the federal taxes withheld from your paycheck starting next month. But we believe the more significant long-term benefit to each of us will result from the lowering of tax rates on businesses,” Hill told employees. “This should free up income that can be reinvested in businesses, passed through to stockholders, or paid to employees in the form of higher wages.”

Hill said rather than being at nearly the highest rates in the world, the new U.S. federal tax rates are competitive with the tax rates of most other countries.

“This not only will make it very attractive to foreign companies to invest in the United States, but it will encourage American companies to invest in their U.S. plants and employee wages rather than sending jobs overseas. We expect to see huge amounts of cash held overseas by U.S. companies being brought back and invested in the USA,” Hill said. “While it will take some time for new investments to be felt throughout our economy, we are optimistic that markets will expand for the products we produce at LPC. If we continue to perform well and treat our customers right, this will mean more secure jobs at our company.”

In order to prepare the company to handle the anticipated increase in business, Hill said LPC will expand its near-capacity plant in Fremont by 60,000 square feet and invest more than $5 million in new machinery at that plant. If the Lawrence and Hutchinson plants near their capacity, LPC will evaluate whether to expand at those plants.

Hill said the employee bonuses and capital investments are a way to embrace what LPC believes will be a brighter future for all.

“We value what each and every one of you do every day by coming to work for us and helping us produce the products and services needed by our customers,” Hill told employees. “While we wish that our Kansas employees had not been subjected to higher state taxes by the Kansas Legislature last year, we need to celebrate the lower federal taxes to be imposed upon the company and on you as individuals.”

The Lawrence Paper Company was the first paper mill constructed west of the Mississippi in 1882. An industry pioneer from its very beginnings, LPC developed numerous paper shipping products and the equipment to make them and then shared the technology so the whole industry would benefit. Among its capabilities today, LPC offers industrial boxes, retail displays, and custom box designs shipped directly from its fulfillment center.