Business Leaders: Mike Haws of Sappi Paper is leading a $400 million investment in Somerset Mill

PHOTo / Courtesy of Sappi Paper Mike Haws, president and CEO of Sappi Paper, is leading a $400 million investment in the company’s Somerset Mill in Skowhegan.

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By Peter Van Allen

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Mike Haws joined Sappi in 2012 as managing director of the Somerset Mill. Prior to Sappi, he held operational roles with Verso Paper, International Paper and Champion International. He has a bachelor’s of science in paper science and engineering from the State University of New York College of Environmental Science and Forestry. He is overseeing Sappi’s $400 million investment in the Somerset Mill in Skowhegan.

Mainebiz: What are some of the key upgrades being made at the Somerset Mill?

Mike Haws: At Sappi’s Somerset Mill, we’re undertaking a monumental construction project to transform and expand Paper Machine No. 2. With an investment exceeding $400 million, this initiative — the largest rebuild project in Sappi Limited’s history — will double PM2’s production capacity and enable the mill to manufacture more sustainable SBS (solid bleached sulfate) paperboard for packaging products that are more environmentally sustainable alternatives to single-use plastics. The project builds on our earlier $200 million investment in 2018, which expanded Paper Machine No. 1 and upgraded the mill’s woodyard.

The scale of this endeavor is staggering. For context, the Empire State Building rests on 210 foundation columns sunk 55 feet into Manhattan bedrock. In contrast, PM2’s new machine hall and winder are supported by 205 columns driven 80 feet into Maine’s granite bedrock. A Boeing 747 stretches 250 feet and operates with 400 control instruments; PM2 spans 800 feet and is equipped with nearly 2,000 instruments to manage its operations.

This strategic investment secures the future of our state-of-the-art Somerset Mill for generations to come, positioning Sappi North America as a leader in sustainable innovation.

MB: How do you approach a complex upgrade like this?

MH: This is a complex, multifaceted project driven by a clear vision. As part of our global 2020Vision strategy to significantly boost group EBITDA, we identified opportunities to invest in our business, targeting high-growth markets while maintaining profitability and competitiveness worldwide.

Somerset’s world-class infrastructure, skilled workforce and access to premium fiber made it the ideal site for a nearly $200 million investment back in 2018. This initiative enhanced the mill’s flexibility and expanded its capacity to produce consumer-demanded products for years to come. The project’s success stems from exceptional management, which instilled full confidence in our North American team when we sought board approval to rebuild Paper Machine 2. This upgrade shifts production toward growing packaging segments, reducing reliance on declining markets. The effort unites every part of our company.

The undertaking is vast and intricate, with engineering as a standout achievement. We’ve collaborated with top-tier global partners, including engineering firms, and equipment suppliers. Our team traveled to Finland to train with Valmet, a key partner, which coordinated with an Indian manufacturer to build the massive press section. Our staff inspected every detail in India before the machinery was disassembled, packed into roughly 10 shipping containers and sent to Maine. The entire paper machine was shipped in 214 containers.

The assembly posed its own challenges — constructing the new paper machine beside the operational one. In January, the old machine was dismantled, removed and replaced with new modules lifted by two 80-ton bridge cranes. Other equipment was airlifted by helicopter. This intricate process involved installing cutting-edge equipment, removing outdated components, erecting a new steel structure, and upgrading infrastructure while minimizing disruption to daily operations.

Once engineering was completed, the focus shifted to construction. A project of this scale required over 1,000 external contractors, which introduced challenges in training and upholding our high standards for safety and quality.

Sustainability remains a top priority, guiding decisions on energy, water and waste reduction. The technology powering this transformation is state-of-the-art, but its success hinges on the people behind it.

MB: With so many Maine workers aging out, how do you replenish the workforce?

MH: Replacing the deep expertise of our retiring employees presents a significant challenge at Sappi, where it’s not uncommon for individuals to dedicate over 30 years to our company. We’ve significantly strengthened our partnerships with educational institutions in Maine, including the UMaine, and Maine Maritime Academy, as well as trade schools across the region. In collaboration with the Maine Department of Labor, we’ve also launched an apprentice program at our Somerset mill.

MB: In a digital age, how does paper remain such a valuable product?

Mike Haws: People are more likely to remember what they read on paper compared to a screen. Why? Paper offers a more intuitive way to navigate content, supports better mental mapping of information, and demands fewer cognitive resources, ultimately boosting retention. Consider the number of emails you receive daily versus the handful of items in your mailbox. A thoughtfully designed piece of print stands out, cutting through the digital noise. In a world where online information can be unreliable and hard to trust, I believe people place greater faith in what they read in print. I know I do.

Sappi Paper Co.

What it does: Produces paper, with sites in Skowhegan and Westbrook, and a corporate office in Portland.

Total Maine employees: 1,200
Somerset Mill, Skowhegan: 780
Westbrook: 170
Technology center: 70
Portland corporate office: 175

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