PERU – It was like an early Christmas present for the River Valley Growth Council.

The Archibald family turned over ownership of the former Diamond Match mill in Peru to the regional economic organization on Tuesday for the potential development of several new industries.

“It’s the full intention of the growth council to make a job engine out of this mill. It’s a one-of-a-kind asset that the Archibald family has made possible,” said Scott Christiansen, council developer.

The council has been working with Alan Archibald for more than a year to acquire the 160,000-square-foot facility just across the Mexico-Peru bridge along the banks of the Androscoggin River. The property includes about seven acres of land.

The sprawling building complex employed scores of workers in the wood-turning industry until 1987 when it closed. The Archibald family bought the property and used it for storage. With the change in ownership, Archie’s Inc. will lease a portion of the complex to continue using it for storage. The buildings were constructed in the 1930s and ’40s.

The council is negotiating with Alan Archibald for an option to buy the remaining six acres surrounding the mill complex.

New industries

Christiansen said the council’s super-insulated housing project and biorefinery plant project are under consideration for the site. He said there is significant corporate interest in both projects.

A biorefinery would reduce waste wood to chemicals that can be used in products as well as a marketable hydrogen fuel.

The former mill is in a proposed Pine Tree Zone, an economic development area that would provide new businesses and industries that move into a complex with tax incentives. The governor is expected to act on the Pine Tree Zone designation early next year.

A railroad siding is available at the former mill.

Environmental concerns

The council had received earlier this year more than $100,000 in Environmental Protection Agency grants for an already-conducted environmental assessment of the complex.

The council has applied for another $200,000 to mitigate some of the environmental problems at the site. Christiansen said the council will know whether it will receive the grant by March 1. In the meantime, the council must come up with about $40,000 in matching funds, something Christiansen said can be raised through the removal of fir flooring in a portion of one of the buildings.

Diversification

RVGC President Joseph Derouche said the acquisition of the mill, together with the construction of a tech center in downtown Rumford, are two major steps in diversifying the region’s economy.

“We are thinking long-term. That’s the key to survival,” he said.

He said manufacturing will alleviate Maine’s economic downturn, and the Peru mill complex will be among the innovative manufacturing projects.

“It’s a real exciting time for the River Valley. This building gives a sense that something is coming,” he said.

He is hopeful that other economic opportunities will arise in other River Valley towns.

“We hope it will spur other opportunities so we’re not depending on one major manufacturer. The Archibald family has given us that opportunity and I feel it will be successful,” he said. “This is another Christmas present for the River Valley.”

eadams@sunjournal.com

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