An official says the plan is not definite.

MILLINOCKET (AP) – Katahdin Paper plans to reopen its dormant Millinocket mill by fall, according to a company official.

“Once it starts up, we’re confident we’ll do well with the place as long as we have the proper balance of fiber,” said spokesman Glenn Saucier.

The company is working to identify the lowest-cost option for buying pulp, he said.

But shaky market conditions in the paper business means the plans aren’t definite, Saucier said.

“The paper market still isn’t all that great, so it’s going to be a timing issue to get in there,” he said. “And if you don’t do it right, you could fall on your face.”

The Millinocket and East Millinocket mills were formerly owned by Great Northern Paper Co. and employed 1,130 people before closing when Great Northern filed for Chapter 11 protection in January 2003.

The company was sold to Brascan Corp. of Toronto. The East Millinocket facility began making newsprint again in June with 400 workers.

The company is optimistic the Millinocket facility again will play a viable role in the paper industry, Saucier said.

Restarting the No. 11 supercalendered paper machine and the potential 12- to 18-month construction of a new bleach chemi-thermo-mechanical pulping operation are still the main options, Saucier said. The operation would need a significant round wood supply.

Company officials are looking to employ 130 to 150 people when the facility reopens, he said.

The Millinocket facility is currently staffed by a crew of eight who are maintaining heat to the area surrounding the No. 11 machine, the administration office and the engineering and research facility.

There are no planned shutdowns at the East Millinocket facility, Saucier said.

AP-ES-12-26-03 1250EST