BAILEYVILLE (AP) – Fifty employees at the Domtar Industries pulp and paper mill will lose their jobs within the next 12 months in the latest economic setback to this eastern Maine community of nearly 1,400.

Montreal-based Domtar said it is restructuring the mill operation in an effort to cut costs and become more efficient.

“The Woodland mill has conducted an in-depth analysis and review of its business operations and resulting manpower needs,” the company said in a statement.

“This workforce reduction will mainly result from the sharing of best practices between Domtar’s manufacturing facilities as well as a concerted effort by all to reduce spending.”

Employment at the mill will drop to below 500 with the latest job reductions.

“This is to bring our mill more in line with what the benchmark is for the number of employees to run an operation of our size compared to other industries of our size across the country,” human resources manager Charlie Snelling said Tuesday.

The mill, which produces northern hardwood pulp and business and printing paper products, was purchased by Domtar from Georgia-Pacific in 2001.

Baileyville Town Manager Scott Harriman said the layoffs are more bad news for the community along the Canadian border and all of Washington County.

The Domtar announcement follows the temporary closing of the neighboring Louisiana-Pacific oriented strandboard mill.