May 30, 2008
Millinocket mill to shut down
Katahdin Paper announced yesterday it will close its Millinocket paper mill because the cost of oil has rendered it unprofitable.
The closure is expected to take effect July 28 for an indefinite period, and will mean 208 people will lose their jobs, according to a statement from the company. "The root causeˆ is record high oil prices which have doubled our fuel costs over the last twelve months," said Peter Gordon, president and CEO of Fraser Papers, Inc., which manages Katahdin paper mills. In 2007, the Millinocket mill consumed over 400,000 barrels of oil to create heat needed to make paper. The closure will not affect Katahdin's other paper mill in East Millinocket.
Gov. John Baldacci and U.S. Rep. Mike Michaud released statements promising to assist in worker transitions and calling for more alternative energy in Maine. The governor directed Rosaire Pelletier, his senior forest products advisor, to work with Katahdin Paper to decrease its dependence on oil.
The closure is expected to take effect July 28 for an indefinite period, and will mean 208 people will lose their jobs, according to a statement from the company. "The root causeˆ is record high oil prices which have doubled our fuel costs over the last twelve months," said Peter Gordon, president and CEO of Fraser Papers, Inc., which manages Katahdin paper mills. In 2007, the Millinocket mill consumed over 400,000 barrels of oil to create heat needed to make paper. The closure will not affect Katahdin's other paper mill in East Millinocket.
Gov. John Baldacci and U.S. Rep. Mike Michaud released statements promising to assist in worker transitions and calling for more alternative energy in Maine. The governor directed Rosaire Pelletier, his senior forest products advisor, to work with Katahdin Paper to decrease its dependence on oil.
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