JAY – International Paper’s announcement that it will invest $112 million at its Androscoggin Mill was greeted with praise and optimism Thursday.

The investment is expected to give the region more economic stability after several manufacturing business closings in Franklin County and the shutdown of paper mills around the state. IP announced Thursday that its corporate office approved the investment to rebuild No. 3 coated paper machine and upgrade its groundwood mill operations, bleaching plant and transformer system. No. 3 paper machine makes paper for magazines and catalogs. Jay voters approved a 20-year tax break for the company by a 356 to 79 vote last month, which helped the project go forward.

“International Paper’s intent for the coated papers business has been and will continue to be to invest in projects that increase efficiency, lower manufacturing costs and allow us to produce the innovative products that our customers demand,” stated mill Manager Mike Craft in a press release. “This investment in the No. 3 paper machine will accomplish all three objectives.”

Strong support from the people of Jay was a key element in the decision to approve this project, Craft added.

By partnering with IP on the tax increment financing agreement in June, they clearly demonstrated their belief that this project will benefit the community as well as the company, he stated.

The anticipated completion date for the project is May 2004.

The tax-increment financing package allows IP to retain 60 percent of the taxes it will pay on the new investment and the town will keep 40 percent of the new taxes.

“It does add some to the tax base but I think the most important part of this whole project is the stability it will offer to us as a community and region,” Town Manager Ruth Marden said. “In these economic times we’re experiencing, it is just fantastic news to have this type of economic growth in Jay.”

She added that a side benefit to all of this has been the great working relationship between IP and the town of Jay.

U.S. Sen. Olympia J. Snowe called the investment, “a breath of fresh air for Maine’s paper industry.”

She added that it “will hopefully spur economic development and increase contracting employment at the mill.”

Franklin County Clerk Julie Magoon said that “anytime there is an investment in Franklin County, it’s good news.” She said the investment could mean more jobs during construction and it would help others retain jobs.

Jay has in excess of a $16 million tax commitment, which includes $911,000 it pays to Franklin County for its share of the county budget.

Glenda DiPompo, an owner of the family’s Riverside Kwik Stop, a convenience and takeout eatery on Riley Road that leads to the mill, said she was glad to hear the news. Her business as well as others in Jay get business from workers at the mill. “I think it will continue the longevity of the mill a while longer,” DiPompo said. “It will be a benefit to us.”

According to Alison Hagerstrom, executive director of the Greater Franklin Development Corp., “It’s just great that they are choosing to invest in this this place.” It’s good news for the region, she said.

dperry@sunjournal.com