BANGOR (AP) – With the former Eastern Pulp and Paper Corp. mill in Lincoln now back in business, state officials are exploring options for the company’s sister mill in Brewer.
Paper Acquisition Corp., a Massachusetts company that had tried to buy Eastern Pulp during bankruptcy proceedings earlier this year, is in the midst of preliminary talks about setting up operations at the Brewer site.
In addition, Gov. John Baldacci said he has had discussions about the mill with a financial entity in New York that he declined to identify.
Baldacci last week announced the creation of a task force to explore manufacturing options for the site.
Brewer officials have been looking at other uses for the 41-acre property, including light manufacturing, an arts center, apartments and office space, according to Drew Sachs, the city’s economic development manager.
Baldacci said he wants to meet with task force members and city officials June 22 to outline the options for the city, which technically is the mill’s new owner.
“When I sit down with them, I want them to know these are the areas that I think are more viable for restart or reuse, and at the same time recognize that the city of Brewer is driving economic development,” Baldacci said. “We need to form a partnership.”
Sachs said Friday that he, too, has been talking with prospective tenants for the mill site, but could not name them.
Robb Osinski, a partner in Paper Acquisition, said his company wants more information about what the governor or the task force envisions for the mill site.
“I think trying to make a go of it with that facility is a difficult proposition,” Osinski said. “But I would be receptive to hearing what the plans are and seeing if we could plug into that endeavor.”
Paper Acquisition in February had offered $8.5 million to buy Eastern Pulp’s mills, which were sold to First Paper Holding LLC of Connecticut in late April in a deal totaling $23.7 million.
More than 750 people lost their jobs when Eastern Pulp was shut down in January. First Paper reopened the Lincoln mill last week and will employ 360 people by mid-August.
To buy the Brewer mill, any prospective occupant will have to negotiate with Brewer, First Paper and a couple of Eastern Pulp’s creditors.
AP-ES-06-12-04 1232EDT
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