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Fraser Papers Closes Katahdin Mill


May 30, 2008
By Pulp & Paper Canada

Fraser Papers is closing a paper machine in Millinocket, Maine. The 180,000 ton per year machine will shut down on …

Fraser Papers is closing a paper machine in Millinocket, Maine. The 180,000 ton per year machine will shut down on July 28, for an indefinite period. Roughly 208 hourly and salaried employees will be affected by the closure.

Fraser Papers operates the machine for Katahdin Paper Company. Paper produced at the facility is used for magazines, catalogues and retail inserts.

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“The root cause for today’s announcement is record high oil prices, which have doubled our fuel costs over the last 12 months,” Canadian Business Online reported Peter Gordon, president and CEO of Fraser Papers as saying. “In 2007, the Millinocket mill consumed over 400,000 barrels of oil to generate heat and steam for the paper-making process,” Gordon confirmed.

Katahdin Paper Company has a total of 590 employees in Millinocket. Its three paper machines, and pulp and paper mill are all operated and managed by Fraser Papers.


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