LINCOLN – Lincoln Paper and Tissue Co. made a profit in August after fewer than three months of operation – and after a prolonged closure by the mill’s previous owners nearly doomed any hopes that anybody would make paper here again.

The announcement that the mill is making money was made Saturday during an employee appreciation day picnic hosted by the facility’s new owners, First Paper Holding Co. of South Norwalk, Conn.

“Against all odds … we are now, as of August, profitable once again,” said co-owner John Wissmann.

First Paper Holding bought bankrupt and abandoned Eastern Pulp and Paper Co. for $23.6 million in late May and began production of specialty tissue, paper and other products and pulp in June.

Eastern Pulp owned Lincoln Pulp and Paper Co. in Lincoln and Eastern Fine Paper Co. in Brewer. The Brewer mill, viewed as not being cost-effective, was sold to the city of Brewer.

In Lincoln on Saturday, a continual downpour of rain did not overshadow the enthusiasm of a community that has suffered considerable setbacks in the past 20 months.

Many of the hundreds of people who attended said being soaking wet and cold was better than being unemployed.

“After all we’ve been through, a little rain ain’t gonna stop us, that’s for sure,” said Steve Corriveau, president of the mill’s union.

More than 340 of the some 500 people who worked at the facility when it was shut down Jan. 16 were rehired. Seven more people will be hired this week.

John Sutherland, a mechanic for more than 20 years, is now an employee, but never was on Eastern Pulp’s payroll. “They took applications and I put in an application and I was hired,” Sutherland said. “I see a future here.”

In January 2003, two fires devastated the core of Lincoln’s downtown. A year later, the mill – the primary source of economic stability in the community – was shut down.

Now the town is rebuilt and two paper machines and two tissue machines inside the mill are restarted. About 150 32-ton truckloads of hardwood chips are delivered weekly by W.T. Gardner, and up to 35 truckloads of softwood sawdust are delivered daily from regional sawmills, according to Carl Hamilton, Lincoln Paper’s wood procurement manager.

“It’s nothing short of a miracle that we’re all standing here,” said state Rep. Rodney Carr, R-Lincoln.

In June, the mill’s first month under new ownership, more than $6 million was spent on expenses to get operations running, according to Keith Van Scotter, president and co-owner.

“We planned it but we went through a lot of money in June,” he said.

How much money was made in August was not disclosed, but Van Scotter said earnings before interest, depreciation and taxes were positive.

“I’m proud you’re making money,” Gov. John Baldacci told the new owners at a brief ceremony during the picnic. “I’m glad you’re profitable.”

Rod Fisher, owner of Fisher International Corp. of South Norwalk, which formed First Paper Holding Co., said management is pursuing possible partners for the construction of another tissue machine.

He said there’s always the possibility that some papermaker might offer First Paper a lot of money to buy the Lincoln mill, but right now the focus is on growing the business.

“We’ve got some ambitions for this mill that may be beyond people’s expectations,” Fisher said.

On picnic tables under tents, party napkins made at the mill graced the tables. On a nearby lawn, Brittany Libbey, 11, whose father is a millwright, and Rebecca Smith, 10, whose parents work for mill suppler Fastco, ran through the rain pulling balloons behind them.

While they were playing, Amy and Laura Nicholson, 10, were bugging their mother, Terrina, to leave so they could go to Wal-Mart to pick out birthday presents. The twins turn 11 next month.

Terrina Nicholson of Medway was laid off from the former Great Northern Paper Inc. in Millinocket when that mill went bankrupt in January 2003. She was rehired as a temporary worker by Great Lakes Hydro Inc. last December.

A month later, her husband, Paul, was laid off at Lincoln Pulp.

“We had one month where we felt like we were going to be OK … ,” she said. “Then Lincoln shut down.”

The Nicholsons signed up for MaineCare to have insurance for Amy, Laura and sister Kristen, 15, and cut back on expenses and extras.

“We tried to keep things together for the kids,” Terrina Nicholson said.

Paul now is employed as a millwright at Lincoln Paper and Tissue. On Saturday, Terrina held back her tears and enjoyed a piece of cake decorated with the mill’s corporate logo.

“We’re very fortunate to be back to work,” she said before leaving for Wal-Mart.