Paper watch
Two paper mills struggling in the recession have shown signs of new life, one by moving forward to convert its oil-fueled operation to biomass, and the other by restarting its log-chipping operation and saving up to 100 jobs. A third bankrupt mill hit a roadblock, however, after workers overwhelmingly rejected an initial labor contract.
After sitting idle for more than a year, Katahdin Paper Co. LLC in Millinocket could reopen if its owner successfully signs up new customers for mill-generated electricity.
Brookfield Renewable Power shut down the mill in September 2008 and laid off 207 workers, citing the high costs of oil. Since then, it has been seeking a partner to finance the mill’s biomass conversion and restart the mill, the Bangor Daily News reported. But Brookfield Vice President Daniel Whyte told the paper it first needs to secure a customer to attract an investor.
In late November, it had a glimmer of good news. Brookfield asked the Maine Public Utilities Commission to approve a 20-year contract with Bangor Hydro-Electric Co. and Central Maine Power Co. to supply power to them and the mill with a 30-megawatt biomass boiler that burns tree bark and other wood waste.
NewPage has returned to producing its own papermaking fiber after using outside sources for nearly a year. The mill has restarted its log-chipping operations, which will help save 100 jobs that were threatened last September, the Sun Journal reported. Spokeswoman Janet Hall told the paper the in-house process was cheaper and that NewPage, based in Ohio, plans to have the log-unloading and wood-chipping operation running at 50% capacity by January.
On Nov. 22, 98% of Fraser Paper Inc. mill workers rejected an initial labor contract, according to the Bangor Daily News. The Toronto-based company has been in bankruptcy protection since June and is considering spinning off the Madawaska mill into a separate division, but cites a beneficial labor agreement as a stipulation of the change.
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