Maine's Paper Industry Holds Summit
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According to a report earlier this week by WCSH, Portland, Me., about 250 people were on hand to attend Tuesday’s summit of challenges, seeking advanced solution that could help ensure the future of the state's paper industry. In less than two years, five paper mills have announced they're shutting down or laying off workers. It’s said to be a critical time for the industry. Mills in Maine have declared bankruptcy, shed more than 1,500 jobs, and closed entirely.
The Maine Pulp & Paper Association is holding a summit a day after Verso Corporation indicated the Androscoggin Mill in Jay could be sold to raise money (see article below).
They discussed challenges and advance solutions that could help ensure the future of the pulp and paper industry in Maine. The topics spanned from fiber cost and availability, transportation infrastructure, to energy costs and workforce development. State legislators, a rep' from Governor LePage's administration, and experts from across the country were there to discuss "real solutions."
According to an additional report covering this week's summit by MPBN, Lewiston, Me., Sappi (Johannesburg, South Africa) which operates mills in Westbrook and Somerset, has been able to avoid the large setbacks that have hit others in the state's paper industry.
Sappi's mill in Skowhegan is the seventh largest papermaking facility in the world. So far, the mill has managed to navigate these challenges without shutting down paper machines and laying off some of its more than 700 employees in Skowhegan. Robert Rice, a professor of wood science at the University of Maine in Orono, said there are reasons why.
"In times when business is bad, they take the time to modernize and reinvest where they can," he said.
"This really high technology piece of equipment — it can handle rolls up to three tons," Skowhegan Mill Manager Tony Ouellette said, demonstrating rolls of high-quality, catalog-grade paper moving down a conveyor and stopping in front of a orange robotic arm shaped like a half moon. The arm nudges the rolls onto a lift, then upends them.
"From a prone position into a stand up position, so a clamp truck can come grab it, and the clamp truck can transport it to its appropriate location," Ouellette explained.
This $1.5 million piece of machinery, installed in September, is an example of the kind of consistent reinvestment into the mill that's allowed Sappi to thrive unlike other paper companies despite adverse market conditions in Maine. Since 1994, the company has poured more than $400 million into the facility.
Over time, the intense focus on research and development has helped Sappi come up with a product line that is more diverse than those of some competitors who've struggled. It includes specialty papers such as grease-resistant sheet, used in pet food bags and labels for canned soup and other food products.
"They know how to run the business and they have pretty solid management at all of their mills," Rice said.
He added that Sappi's sheer size is another big advantage. It can export from the U.S. to Europe or from Europe to the U.S., depending on market conditions. The company, he added, also goes out of its way to work with large landowners on sustainable forestry practices.
The industry group organizing the summit said the paper industry remains a major employer, with more than 4,500 papermaking jobs in Maine. Mill leaders recognize it's their responsibility to improve operating efficiency, make capital investments, and innovate products to meet customers’ needs. This summit provided open conversations about how the industry can compete and thrive in today’s challenging times.
