A SIGN OF PROGRESS

Real progress yesterday in the struggle to return the Great Northern Paper Co. mills to operation provided a first, crucial sign of hope for a region fighting to keep itself alive. But there remain many details, many uncertainties, many occasions when the cooperative spirit among the unions, creditors, political leaders and the new management that led to yesterday’s announcement again will be essential to get the mills running.

Gov. John Baldacci’s comments Friday were the result of a lot of hard work. He deserves credit for throwing himself into this desperate situation, bringing all sides together, keeping them properly informed and pushing for a solution. But everyone associated with the operations had to pitch in to reach this first milestone. The old Inexcon management, clearly, couldn’t continue while a buyer was found; its acting replacement, pending court approval, will be led by Jim Giffune of New Gloucester, a former senior vice president of Fraser Paper Co. and vice president of operations of Great Northern Paper Co. Mr. Giffune says he wants to “work as quickly as possible to turn this situation around.” He has a much tougher job in a much tougher market than just a couple of years ago when, for instance, the company still owned its valuable hydro assets and hadn’t placed part of its lands in hock.

This much is known. There are no doubts about the quality of GNP’s products. While the paper market is glutted, demand is steady and an improving economy could increase it quickly. Millinocket and East Millinocket have solid work forces and niches that could allow them to succeed. That is a strong start but the challenges are equally strong – the mills need long-term investment, they are likely to need further support from the state and could well emerge smaller than they were last month, and they will need Maine’s congressional delegation to examine and flag unfair international trade practices. All tough issues.

But the chance to succeed might be measured in the interest from potential buyers – as many as six companies are considering a purchase. Five of them are from Canada. All are likely to expect further labor concessions and

a lot of public support. They may well get it, considering the immediate alternatives. And certainly, it is easy to observe that long-term successes will be found in diverse, value-added and high-tech products. True, but they won’t pay next week’s grocery bill.

The best deal now for the millworkers, and Maine overall, will come from the kind of cooperation seen in the last two weeks, when secured creditor Cianbro Corp., owed more than $6.2 million by GNP, said it would be patient on repayment. Or when Lucien Deschaine, a PACE International union representative, said labor “is committed to do whatever it can to assist this interim management team and new management get the mills operating again.” Or, on the federal level, where Sens. Susan Collins and Olympia Snowe and Rep. Mike Michaud are working to speed federal support to the region.

The best possible outcome for GNP will look like something worse than what was possible four years ago but better than the direction of the mills at the end of 2002. It is unlikely that anyone in the region believes the old days will come back. It is very likely that the people there understand as well as anyone else what is needed to bring the region back to health. Keep them and everyone who can help a part of the discussion, as Gov. Baldacci has been doing, and success will follow.