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April 24, 2014

Energy plan to cause more Lincoln paper mill layoffs

More layoffs are expected at Maine’s sole tissue producer as a result of a recently approved $7.8 million energy efficiency plan to retrofit old machinery.

Keith Van Scotter, co-owner of Lincoln Paper & Tissue, told the Bangor Daily News there will be a “few” layoffs because the plan will cut down the number of required workers. He did not specify how many would be laid off or when the cuts would occur.

The energy efficiency plan, bolstered by a $1 million grant from Efficiency Maine, will involve a $2.8 million project to upgrade refining equipment that is expected to save the company 5.8 million kilowatt hours a year. The remaining amount from the $7.8 million will be used to improve logistics.

The Lincoln paper and tissue manufacturer, which currently employs about 190 workers, was forced to furlough 200 workers last December as a result of a boiler explosion and a loss of a major customer that shipped production overseas. The federal government awarded a $256,696 grant to the Maine Department of Labor in March to help with 100 of the furloughed workers.

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