3-party agreement reached on G-P sale State officials not releasing further details

OLD TOWN – The prospective sale of the Georgia-Pacific Corp. mill is moving forward, according to the governor’s office, but state officials wouldn’t release any details Friday regarding the three parties reportedly involved in the transaction.

“A general understanding on the structure of a three-party deal on the G-P mill in Old Town has been reached,” according to a press release Friday from Gov. John Baldacci’s office.

When G-P announced more than four months ago it was closing the Old Town facility and associated chip mills, more than 450 people were put out of work. The company agreed to work with the state to find a buyer, but a deal has not yet been completed.

When asked what was new about this announcement compared to previous comments by the governor stating that an oral agreement had been reached, Baldacci’s communications director, Crystal Canney, said Friday: “It’s the first time that we’ve ever said that there is the structure of a three-party deal.”

Canney wouldn’t elaborate on who any of the three parties are, or what the next steps will be.

Baldacci explained in his written statement that the plan involves redevelopment of the mill site.

Within the first couple of months of operation, a good portion of the work force will be re-employed, and within a couple of years, the employment levels are projected to exceed the number of employees at the mill when it was a pulp and paper operation.

“We’re encouraged by the progress that’s being reported, that’s for sure,” Dan Bird, vice president of the Local 80 papermakers union, said. “We’re ready to go to work just as soon as we get the details.”

“This is another positive step. While items remain to be finalized, none of them seem to be insurmountable. The most difficult obstacles have been overcome,” Baldacci said in the release. “We expect this deal will be very beneficial to the people of Old Town and the region.”

He noted that the result is expected to be a diversified economic base of the city and surrounding region.

“We’re eager to work with the parties involved,” Bird said. “We believe that we can work together to overcome any remaining difficulties.”