Lincoln Paper & Tissue revealed that the decision of a major customer to outsource paper production to Indonesia, in addition to an unforeseen boiler explosion, contributed to the mill’s decision to lay off 200 workers indefinitely.
The Bangor Daily News reported the company revealed the contract loss in a Dec. 16 petition to the U.S. Department of Labor requesting eligibility for its workers to receive Trade Adjustment Assistance. That assistance provides job retraining and employment services for workers who lost jobs due to foreign competition.
The petition also indicated layoffs at the mill would begin Thursday. U.S. Sens. Susan Collins and Angus King also filed letters to the U.S. Secretary of Labor urging approval for the mill’s petition, the paper reported.
CEO Keith Van Scotter said last week that the mill would wait until market conditions improve to repair the recovery boiler that exploded Nov. 2 and idled two of the mill’s paper-making machines.
