Sappi North America said this week that it is delivering commercial product to customers following the $500 million conversion and expansion of Paper Machine No. 2 at its Somerset Mill in Skowhegan.
Qualification processes are being completed with a number of customers, and production will ramp up to full volumes through 2026.
The $500 million investment doubles the production capacity of Paper Machine No. 2 and, the company said, positions the Somerset Mill as one of North America’s most advanced production sites for high-performance solid bleached sulfate paperboard.
It also drives Sappi’s shift from the graphic paper market — now in decline — to growing sectors like packaging for food, beverages and consumer goods.
“Sappi’s investment is more than just an upgrade to a paper machine, it’s a long-term commitment to our people and our community in Maine,” said Mike Haws, president and CEO of Sappi North America. “Our team at Somerset pulled off the largest rebuild in our company’s history, all while continuing daily operations. Their dedication and skill are what made this possible.”
Sappi has 780 employees at the Somerset Mill and another 400 at sites in Westbrook and Portland.
$700 million invested
Haws, who joined Sappi in 2012 as managing director of the Somerset Mill, was a 2025 Mainebiz Business Leader of the Year.
Under his leadership, Sappi has invested over $700 million in the Skowhegan facility since 2018, first with upgrades to Paper Machine No. 1 and now with the rebuild of No. 2.
At the peak of construction, there were an estimated 1,000 contractors on site, said Blue Keim, managing director of operations at the Somerset Mill.
They were “supporting not just the mill but many local businesses in Somerset County,” Keim said.
“This kind of investment gives Maine’s manufacturing sector a strong foothold in the global economy,” said Haws. “It keeps our mills competitive, and our people employed in good, meaningful work.”