N.H. paper mills lay off 100, citing weak demand

GORHAM, N.H. – Only two months after putting out “help wanted” signs, the owner of the paper and pulp mills in Berlin and Gorham has laid off about 100 workers because of the economy.

Richard Chapel, director of corporate communications for Fraser Papers of Stamford, Conn., said the company shut down two machines at the Gorham plant, effective Sunday.

“The reason is related to economic conditions and the market,” he said. “We’re experiencing very weak demand, and a lack of orders and deteriorating prices have forced us to adjust capacity to meet the demand.”

He said any callback would depend on demand, though “the expectation is to be back in full production at some point.”

In September, the company was trying to hire 30 people, and the plants had 630 workers as of Oct. 1.

Fraser had saved the mills after American Tissue filed for bankruptcy in September 2001 and shut them down. The mills, the largest private employer in northern New Hampshire, were closed for nine months, leaving 830 people out of work and devastating the area.

Fraser reopened them in June 2002.

In late April, Brascan Corp. of Toronto, which owns Fraser Papers, purchased the former Great Northern Paper Inc.’s mills in Millinocket and East Millinocket. In July, the East Millinocket mill was reopened after being shut down for more than seven months, and 300 people were hired back of the 1,130 people who used to work at both mills.

The mills now are operated under the name Katahdin Paper Co. and are managed by Fraser Papers.