Katahdin Paper hints at restarting

MILLINOCKET – Officials from Katahdin Paper Co. are hoping to meet with local millworker unions within two to four weeks to discuss plans for restarting the paper mill.

Speaking to the Town Council Thursday evening, mill manager and Vice President Dick Arnold said the company is still weighing its options, which could include starting up the No. 11 machine to produce supercalendared paper for advertising inserts and the construction of a thermomechanical pulp mill.

“From an operational standpoint, every time we walk through that mill it’s a shame to see that equipment” sitting unused, Arnold said. The plans then would be presented to the public a short time later, Arnold said after the meeting.

Bought by Katahdin Paper’s parent company, Brascan, in April, the mills in East Millinocket and Millinocket employed 1,300 people when they were closed by former owner, Great Northern Paper Inc. The East Millinocket mill began producing paper again on June 8 with a work force of roughly 400, although the Millinocket mill remains closed.

Acknowledging that the mill was a private business, Councilor Wayne Scarano said the council was equally anxious to hear the plan for the local mill.

“There is a lot of anxiety within the town of Millinocket and the quicker we can put that to rest, the better the elected officials will feel,” Scarano said.

Arnold also dispelled rumors that the No. 10 or 11 paper machines were for sale, but added that much of the other used equipment within the mill has been advertised for sale purposes.

Council Chairman Don McLaughlin praised Arnold and Katahdin Paper for their efforts to keep the council updated since the company bought the mills in April.

“You got off on the right foot,” McLaughlin said. “It’s been a long time … since a company took the time to come in and talk to the council.”

The company’s current priority is to continue running the East Millinocket mill so it remains profitable, Arnold said after the meeting. Beyond that, the company’s objective is to get operations at the sister site in Millinocket up and running, although it has to make good financial sense, he said.

“From a business standpoint, it’s got to be attractive,” he said.

In another item during the meeting, councilors unanimously approved a $400,000 Community Development Block Grant application for Brims Ness – the Portland-based incubator company that will relocate to Katahdin Paper’s Engineering and Research facility. The company soon will begin production on its patented water filter sensors for residential, municipal and industrial uses.