History of Old Town mill

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1860 Production on mill site begins with sawmill. 1882 Penobscot Chemical Fiber Co. established. 1967 Merger with Diamond International Corp. 1978 Consumer products are introduced. Second tissue machine, support equipment installed. 1983 Facility purchased by James…
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1860 Production on mill site begins with sawmill.

1882 Penobscot Chemical Fiber Co. established.

1967 Merger with Diamond International Corp.

1978 Consumer products are introduced. Second tissue machine, support equipment installed.

1983 Facility purchased by James River Corp.

1997 James River merges with Fort Howard, creating Fort James Corp.

2000 Georgia-Pacific Corp. purchases Fort James, including Old Town mill. Mill employs more than 540 people, produces Brawny paper towels, Vanity Fair napkins, Northern Quilted toilet paper. Company has about 25,000 employees at 50 factories in U.S., Canada, Europe. It also produces Soft ‘N Gentle, Mardi Gras, So-Dri and Dixie paper products.

February 2003 G-P announces shutdown of a tissue machine for two weeks in March because of sluggish economy. In addition, Old Town mill’s tissue converting department closes for one day a week for seven weeks. Sixty of mill’s 600 employees asked to take vacation or unpaid leave during shutdowns. G-P mills nationwide experience shutdowns because of market conditions.

March 2003 G-P announces the two tissue paper machines have been shut down indefinitely. Also, limited production shutdowns occur in tissue converting department. One of mill’s 11 conversion lines not operating, but no layoffs in conversion lines. Employees relocated to other parts of mill during brief shutdowns.

April 2003 G-P permanently stops producing tissue at plant, shuts down 13 converting lines. About 300 employees expected to be affected by closure. Employees in pulping operation, who make up other half of Old Town work force, remain on job.

. Month goes by as employees wait to see who is left without a job.

May 2003 Mill escapes closure when state purchases G-P landfill, selects Casella Waste Systems Inc. to operate facility. Casella gives state $26 million to purchase landfill from G-P, which uses the money and additional funding to build biomass plant to cut energy costs, allowing mill to be more competitive and remain open while addressing state’s solid waste dilemma.

June 2003 Despite concerns over potential liabilities, health hazards, Natural Resources Committee signs off on resolve authorizing state to buy 64-acre landfill in Old Town from G-P. LD 1626 later passed by full Legislature.

. Seven salaried employees at mill lose jobs. Company officials say cuts part of restructuring efforts to run mill more efficiently. Company administration says no plans for more job cuts in near future.

November-December 2003 Maine signs formal agreement with G-P to acquire and operate West Old Town Landfill. Document signed Nov. 20 designates 10 a.m. Wednesday, Dec. 31, as final closing date for landfill sale. West Old Town facility is first state-owned landfill.

April 2004 More than 100 people at informational meeting at G-P training center learn that biomass boiler G-P proposes to install at mill will burn more efficiently, improve company’s ability to succeed in paper market. Purchase of boiler to be funded by sale of G-P’s West Old Town Landfill to state. Company plans to recycle biomass boiler built in 1986, previously used at wood-fired power plant in Athens. Boiler has been out of commission for a couple of years.

. Maine Department of Environmental Protection approves landfill project. Numerous attempts to appeal decision are unsuccessful.

May 2004 G-P agrees to purchase biomass boiler from Boralex Inc. of Montreal.

July 2004 G-P to reduce tissue production temporarily at Old Town mill because of nationwide decline in retail sales. Five people expected to be laid off.

November 2004 Old Town purchases 120 acres of G-P property on Penny Road. City now developing economic development plan for site.

February 2005 Mill successfully fires up $27.2 million biomass boiler for first time, uses natural gas for test while awaiting permission to burn waste wood chips. Permit has yet to be granted by state. Although boiler has reduced energy costs, full savings won’t be realized unless construction and demolition debris wood chips, cheapest, most efficient fuel, can be used in boiler.

September 2005 G-P says about 15 employees expected to be laid off in October when two tissue converting lines temporarily shut down. Some employees expected to be transferred to napkin line that is increased to full capacity in October.

October 2005 About 50 G-P workers expected to lose jobs by end of year after G-P announces all converting lines at Old Town paper mill to be shut down. Mill has two tissue converting lines, four napkin lines as part of Quilted Northern Bath Tissue, Vanity Fair Tissue production. All six lines slated to be shut down in companywide restructuring, based on decision by G-P corporate headquarters in Atlanta.

November 2005 Koch Industries Inc., nation’s second-biggest private company, announces plans to buy G-P for more than $13 billion. G-P officials in Old Town say it’s “business as usual” until they’re told otherwise.


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