WEEKLY SENATE UPDATE

LINCOLN PAPER AND TISSUE: A MAINE SUCCESS STORY

In January of 2004, Eastern Pulp abruptly shut down- devastating much of the area’s economy and laying off 750 people. Immediately after the mill shut down, I started working in lockstep with Governor Baldacci to secure a buyer for the Lincoln mill. Finally, two investors stepped forward and purchased the plant for $23.7 million in May 2004. They recognized what many of us have long known about the mill and its tremendous workers- that Lincoln Paper would have a bright future if given a second chance.

This remarkable rebirth from the ashes of the abandoned Eastern Pulp and Paper Company in the year and a half since Lincoln Paper and Tissue was founded has become a success story even beyond expectation. This company and its workers are an anchor for this community with more than 350 well-paying jobs and now, thanks to their new tissue machine, the promise of 40 more.

The new machine will be housed within an 80-foot by 200-foot building that will be built next to Lincoln Paper's two tissue-making machines. The new and old tissue machines, which make high-end paper napkins and towels sold at party stores, will run 24 hours a day, seven days a week.

It is truly extraordinary when I think about how far this mill has come from the literally dark days of early 2004, when I well recall personally and repeatedly phoning the mill’s creditors when workers were laid off, all so we could ensure the mill would remain warm until a buyer could hopefully be found who would honor the unparalleled workforce by reopening – rather than disassembling – this cornerstone of the region’s economy.

And not only has that faith been borne-out, but when the PCG Capital Partners – who have invested $35 million in their new tissue machine – came here with paper industry experts, they recognized a “good thing” when they saw it. The fact is, investors only put $35 million on the line when an operation has promise for the future – and PCG’s involvement with the new owners in this venture is proof positive that Lincoln Paper and Tissue represents enormous potential for the future.

With this new machine on-line a year from now, this mill will double its capacity while alleviating any backlogs that now exist. I couldn’t be more excited for the brighter days that lay ahead at this mill, and most especially for all those who have poured their heart and soul into ensuring the success of this new chapter in the life of this proud community.

Today, with 354 employees and an annual payroll of $21 million, this mill remains the largest employer in the entire region – and we want to keep it that way! According to the State Treasurer, each new payroll dollar generates 6.5 times the economic activity. The new tissue machine will not only create up to 40 new jobs and increase economic activity, but it will also boost the town’s annual tax revenue by about $794,000.

Not only is this plant a boon for the region’s economy, it also takes the environment’s health into account. At Lincoln Paper and Tissue, pulp is bleached using a unique process, making it one of the most environmentally friendly bleached draft mills in North America. Recycling is also one of their priorities. By recycling waste sawdust from nearby sawmills to manufacture it's pulp, Lincoln Paper and Tissue avoids harvesting the equivalent annual growth on approximately 250,000 acres of timber each year. Though their environmental practices, the mill also saves over 9 million gallons of fuel oil, thereby reducing air impacts and greenhouse gas emissions from the facility.

The increased production at Lincoln Paper and the new tissue machine are certainly a great victory for Lincoln and the entire Lincoln Lakes Region – and most of all for the men and women whose work ethic and dedication to excellence has made this expansion possible. Little could we realize how fortunate we would ultimately be that two buyers stepped forward who believe in this industry – but even more so in the excellence and tireless determination of Maine millworkers who, for generations, have woven the fabric of our great state and rightfully earned a reputation for quality and hard work.

I wish Lincoln Paper and Tissue nothing but the best for an even greater future. It is my sincere hope that Lincoln Paper and Tissue’s continued strong economic performance, combined with the new tissue machine, will allow the region to recover well beyond what it experienced after Eastern Pulp’s closing, and make the mill yet another Maine success story.