Catalyst Paper Eyes Taxpayer-Backed Loan for New Tissue Machine at Rumford

According to the Bangor Daily News, Canadian papermaker Catalyst Paper wants Maine taxpayers to back a loan of up to $25 million to help it purchase a machine to make tissue paper at its mill in Rumford.

The company has applied to the Finance Authority of Maine for a $25-million loan under the agency’s Major Business Expansion program, according to minutes from the authority’s April meeting.

If approved, it would be only the second project to get financing through the program. The other project was also for a tissue paper machine, with $7.5 million approved for the $120 million installation of a tissue machine at St. Croix Tissue in Baileyville.

Catalyst calls the total $56-million investment Project Falcon. The company said the project would allow it to take advantage of a growing market for the tissue paper, and even has a "major paper merchant" lined up to buy all that the new machine can produce. Catalyst told state investors the tissue paper enterprise will be able to support 62 full time jobs, worth $79 million in annual payroll and benefits.

The Finance Authority of Maine has cleared the way for one part of Catalyst’s financing plan using a state program meant to entice investment in economically troubled areas.