The old mill will be replaced by a modern, high-production plant.

MILFORD (AP) – Daaquam Lumber Inc. plans to tear down the defunct International Paper Co. sawmill, build an entirely new facility and resume operation next year, officials said.

Daaquam Maine Inc. will manufacture lumber at the site of the old Costigan stud mill, Town Manager Vance Merritt announced Wednesday. Daaquam will invest $38 million in a new plant to produce 12-foot studs, Merritt said.

“They did some research and found out that 12-foot studs were in demand but weren’t being produced anywhere,” he said. “When they get into full operation they will be sawing lumber that would be sufficient to build a three-bedroom ranch, in 15 minutes. It’s a lot of lumber and it’s going to be coming out fast.”

The sawmill will employ about 130 people when it begins operations, said Francois Sequin, its general manager.

“We intend to build a state-of-the-art sawmill,” he said. “It’s modern process equipment, so we recover as much lumber as possible.”

Merritt said the plant will have an annual payroll of $5.2 million.

“There is a tremendous amount of money going to be dumped into this area,” he said.

Milford residents set the stage for the new sawmill last February by approving a tax increment financing agreement. Merritt said that even with the tax break, Daaquam Maine’s taxes will be no less than the $160,000 paid by International Paper.

IP closed its Costigan and Passadumkeag stud mills in 2001, leaving about 230 people without jobs. The company said it was maintaining small chipping operations at the two sites.

Milford Town Council chairman Francis Richard and Merritt recently visited Daaquam Lumber’s main plant in Canada.

“It’s the most modern machines in the country,” said Richard. “Nothing is wasted. Everything is used.”

Daaquam Lumber is a subsidiary of Canfor Corp. of Quebec.

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