GNP head abruptly resigns

BANGOR – In an apparent management shakeup Thursday at Great Northern Paper Inc., the president of the two mills resigned and the parent company, Quebec-based Inexcon, named a new president. Both changes were effective immediately.

A press release issued by GNP Thursday evening did not mention the departure of Don McNeil, who oversaw the operations of the mills at East Millinocket and Millinocket for more than six years. Instead, the statement focused on the appointment of Eldon Doody to the post.

Inexcon of Maine president Lambert Bedard was not available for comment, said GNP spokesman Brian Stetson.

Reached at his home Thursday afternoon, at the same time employees were being told of his departure, McNeil said he could not discuss the reasons he left or if he was asked to step down.

“Let’s just say I resigned and leave it at that,” McNeil said. “I really don’t want to talk too much about anything else. I’m still trying to get my thoughts together.”

Doody, a 26-year employee at GNP, most recently served as mill manager and manager of manufacturing at the Millinocket mill, and manager of engineering and maintenance at both mills. He is a native of Houlton and a graduate of the University of Maine.

It’s been a tumultuous six years for McNeil, who watched paper mills in Maine be bought and sold by major corporations and some later have their doors boarded shut.

Before GNP was purchased last year by Inexcon, it suffered financial difficulties and the threat of closure by its previous owner, Bowater Inc.

During the months leading up to the sale, McNeil saw co-workers try to buy the plants and to counter Inexcon’s purchase offer for the facilities. Bowater rejected the bid in August 1999, and Inexcon bought the mills shortly thereafter for $250 million.

After changes in ownership at major companies it’s common to have changes in management, Stetson said.

“It isn’t unusual, after a brief transition, for things to change,” he said. “We haven’t had any management changes for six years. This is the first significant change.”

Unsure of his future plans, other than “at this point I’m going to enjoy Christmas,” McNeil said he is secure in knowing that in his role as president he fought to keep the mills operating in these Maine towns.

“Things are looking good compared to three years ago, even a year ago,” McNeil said. “The most rewarding thing is that there still are two paper mills in Millinocket and East Millinocket. In the end, I think we were successful.”

Representatives from the mills’ four unions met with Bedard on Thursday afternoon, said one union official who was unable to attend the meeting and was surprised by the announcement.

“[We] were anticipating something different,” the unidentified member said. “Usually, around the holidays the mills have to take some down time.”

No such down time was announced.

Earlier this year, Inexcon confirmed plans to invest more than $100 million in the century-old GNP, which employs more than 1,200 unionized workers.

GNP has contracted with Valmet Corp., a Finnish company, for equipment to rebuild the No. 11 paper machine in Millinocket. Rebuilding the nearly 30-year-old machine is the cornerstone of Great Northern’s future business plan to become a coated and uncoated specialty paper company. The paper machine components are being manufactured for delivery in May 2001. Construction will take place during the summer of 2001.

A New York company, Mineral Technologies Inc., is building a $20 million plant in Millinocket that makes a paper additive. Duke Solutions, a subsidiary of Duke Energy, has joined GNP in a $13.2 million project to modernize the hydro-electric system.

Stetson said the change in management will not affect the expansion plans.