Rumford Mill Shuts Down Paper Machine, 50 Workers Laid Off
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Despite announcing heavy investment this week into upgrading the aging recovery boiler and other areas in the mill to increase power efficiency (see article above in Weekly Spotlight section), the Rumford Paper Mill in Rumford, Maine, USA, will not see savings until it advances through the second half of 2015. That means currently, the mill is still continuing to struggle to balance higher energy costs with the continual decline in demand for conventional papers in the U.S. and other digitally developed nations.
According to a report this week by Maine Biz, (Portland, Maine), the mill sold off by NewPage earlier this year has now laid off about 50 workers under Catalyst’s new ownership and management directives—temporarily halting operation of the No. 12 paper machine.
Tony Lyons, the mills' spokesman, told a local television station that the temporary shutdown decision was "directly market related." It is currently not known if ownership plans to restart the machine simultaneous to implementing the efficiency upgrades.
British Columbia-based Catalyst Paper Holdings bought the mill and a second one from NewPage earlier this year for $62.5 million. Lyons said the mill will continue to evaluate these market situations throughout the summer, and that the layoffs are on a "last in, first out" basis.
