Sluggish market prompts shutdowns at Bucksport, Skowhegan paper mills

International Paper Co. said Wednesday it will close its Bucksport mill for an additional seven days, keeping about 1,000 employees idle next week. In a separate announcement, Sappi Fine Paper North America said it will shut its Skowhegan mill for two weeks later this summer.

Both papermakers cited a slowdown in orders the reason for the shutdowns.

Sappi said it is making cutbacks at all of its mills, including those in Skowhegan and Westbrook.

Sappi spokesman Ed Powers said the shutdown will take place either at the end of this month or the beginning of July.

He said the Skowhegan mill’s 1,000 workers will use either vacation time or take the time off unpaid.

The Bucksport shutdown will affect most of the more than 1,000 employees at that mill, according to Keith Cunningham, an IP spokesman.

The Bucksport mill has been shut down this week, with small crews kept on for maintenance. Next week, there will be no maintenance work done, Cunningham said.

“The power plant will continue to operate; we have an obligation to provide power to [Central Maine Power],” Cunningham said. “And the wastewater treatment plant will continue to operate as well.”

According to Cunningham, IP officials made the decision to extend the mill’s down time after reviewing orders for paper that would have to be filled next month.

“The company looked at the July order entries and it looked like we would have to take another week in July,” he said. “The decision was made to take off next week rather than start up and have to shut down and start up again.”

The Bucksport mill has had sporadic shutdowns throughout the first six months of this year, including one in April that staggered the shutdown of the four papermaking machines at the mill and kept employees at work on and off over a three-week period.

The reasons for the shutdown have been the same: the soft market for coated paper.

Although the first part of the year is generally a slow time for the paper industry, this year appears to be slower than usual. Companywide, International Paper took “significant” down time during the first quarter, resulting in the removal of about a half-million tons of paper from the market, according to investor information published earlier this year on the company’s Web site.

The mill produces a lightweight coated paper used in magazines and catalogs. Typically the demand increases in the second half of the year, as catalog companies prepare their Christmas mailings.

Cunningham said he could not forecast whether the mill would need to take additional down time later this year.

The Associated Press contributed to this report.