Gov. John Baldacci was at the Lincoln Paper and Tissue plant gates early Tuesday to greet about 50 workers returning to their jobs at a paper mill that closed in January but has since been rescued from bankruptcy.
The former Eastern Pulp and Paper mill’s boiler was started during the weekend and paper machines were being restarted after workers returned Tuesday for a reorientation to the mill.
“It was scary for a while, but we’re back,” Milton Smith of Enfield, who had been out of work for five months, told WCSH-TV. “We’ll see if we can’t do it right this time.”
Baldacci was at newly renamed Lincoln Paper and Tissue at about 7 a.m. as workers returned. His administration has been heavily involved in efforts to reopen the plant since the Eastern Pulp shutdown.
“The workers say this mill has always made money,” said Baldacci. “They’re very anxious to get the paper (machines) going.”
Eastern filed for Chapter 11 bankruptcy protection in 2000 but continued to operate until January, when it failed to secure an emergency loan. A month later, its status was changed to Chapter 7 liquidation.
A bankruptcy judge ordered the mills abandoned, but took back the case in March amid efforts to construct a financial plan to keep the company afloat.
State environmental protection and economic development departments and the governor’s office became involved in efforts to secure a buyer as Baldacci insisted that the mill’s closure and liquidation were not options.
First Paper Holding LLC of Connecticut completed its $23.7 million purchase of the company last week. First Paper’s Keith Van Scotter, who joined Baldacci at the mill gates Tuesday, said the plant will be making tissue by the end of this week.
About 360 workers are expected to be back at work when the Lincoln mill is geared up completely by the end of July or early August, Van Scotter said. Baldacci said the company has advance orders for products and the new owners have a solid business plan.
“It reinforces to me what my No. 1 job is: that people have good paying jobs,” Baldacci said later in his office. “It was a very good day and the sun was shining in Lincoln.”
U.S. Rep. Michael Michaud, D-Maine, was also at the mill gates Tuesday, and U.S. Sen. Olympia Snowe, R-Maine, issued a statement commending Baldacci for his work to reopen the mills and pledging to help workers in Brewer affected by the closing of Eastern’s other mill.
While there are no immediate plans to reopen the Brewer mill, Baldacci said its status will not be known for another two or three weeks. The city of Brewer has shown interest in redeveloping the site.
Tuesday’s event at the Lincoln mill is the first of a pair marking the reopening of Maine paper mills.
On June 9, Baldacci is scheduled to attend a similar event at Katahdin Paper Company LLC in Millinocket, where a paper machine at the former Great Northern Paper mill will start up. Baldacci said 125 people are being hired to work there.
Toronto-based Brascan Corp. purchased the former Great Northern mills in Millinocket and East Millinocket last year during a bankruptcy proceeding.
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