Reserve the mills

I was the manager of the Passadumkeag Stud Mill from April 1989 through October 2000. For the first five years, I worked primarily with wood procurement, the log yard, sales and overall management. As time passed, attrition in the management team necessitated that I become more involved in the day-to-day operation. Over the next several years, I reorganized the management team and hired a couple of new employees to fill key positions.

We put more emphasis on the continuous improvement program, expanded the preventative maintenance program and created a machinery alignment team. We also started some programs to improve the knowledge and skills of the entire workforce. (Seminars, training at local vocational schools, etc.)

During this time one of our goals was to get the various pieces of machinery back in as good as condition as they were when originally purchased. A few key machines were upgraded and ended up more effective than they were originally. (An example is the main saw line) The union and mill management spent many hours hammering out some new programs such as profit sharing and a skill base pay system. All of this effort started to really show results in the late ’90s. Saw mill production increased from about 80,000 million board feet per year to 100,000 mbf in 2000. Lumber recovery increased about 15 percent, which resulted in significant savings in raw material costs.

James River managed and then owned the mill from 1988 through October 1997. During this time the mill made money. Losses of the early years were offset by excellent years in 1993, 1994, 1996 and 1997. They made available maintenance capital, that is capital to maintain the plant and keep it operating, but no capital for new up-to-date machinery.

When Champion International purchased the mill in 1997, they indicated that they were interested in improving it. During the spring 1998 we started the process to engineer a major rebuild which was approved by the Champion board of directors in the spring of 2000. Machinery was ordered and an engineering firm was hired to begin detailed engineering. When International Paper purchased Champion International in June 2000, they put the rebuild on hold, which is understandable. They needed to review how the various assets they now owned in Maine fit together. In February, they announced the mill’s permanent closure and that it was not fit for sale.

I have been in the business long enough to know that companies are continuously analyzing various options. Apparently, IP’s long-term strategy does not include sawmills in Maine. I respect their decision. It is not the purpose of this letter to debate the merits of the reasons given for closure. This is not to say that I agree with their decision. I do not. I worked there for almost 12 years. I know the workforce and the mill’s capability.

We spent the better part of two years studying many different rebuild options and their payback. If the mill could be purchased at a reasonable price, the continuous improvement program resurrected and an initial modest investment (new small log line) the mill would be profitable in all but the very worst of markets. The effort put in by a lot of people will have been wasted if the mill remains closed. The entire workforce has a lot of pride in what they have accomplished and in the quality of the product they produce. Many customers prefer the lumber from Passadumkeag Mill because of the quality and customer service.

I respectfully ask the officials at IP to reconsider their position and sell the mill to the employees. This will allow the mill to continue to serve its customers. It will provide employment for the mill workers and those employed in producing raw material as well as those in other businesses that sell goods and services to the mill.

David B. Thompson of Orono is the former mill manager at the Passadumkeag Stud Mill.