RUMFORD – Some employees were surprised and some weren’t. But most don’t know much about the buyer of the MeadWestvaco mill and want to know more.
Mill owners announced Tuesday that the Rumford mill, along with four other MeadWestvaco mills scattered around the country, is being sold to Cerberus Capital Management, a New York-based investment firm, for $2.3 billion.
“We’re up in the air about this whole deal,” said Local 900 President Gary Hemingway. “I’m researching them (Cerberus) to learn how they turned around some of their other companies to make them profitable. I can’t get a lot because they are private.”
He said he doesn’t know what changes might be made at the mill. They can enlarge or reduce the mill, but he doesn’t think it will remain the same.
He said, too, that the sale proposal shows that management will run the mills rather than a corporation, such as MeadWestvaco.
“This could be a good thing,” he said. “MeadWestvaco didn’t want the paper group, and we haven’t gotten much capital. I’m hopeful for capital investment in the mill (with the new owners).”
Cerberus also is expected to honor the labor contract with Local 900 that expires on July 1, 2007.
Hemingway said the pension program, at least for those with five years of service or more, is protected. He’s not sure about those in the pension program for less than five years. He expects Cerberus to discuss benefits and pensions once the purchase is completed.
Safety facilitator Mike Ronan, a 23-year employee who also worked on the No. 10 machine, feels fairly positive about the sale.
“I hope this outfit will serve us better by focusing on one direction,” he said. “We’re optimistic and hopefully this is a good move.”
Cathy Newman, a 15-year employee on the No. 11 machine, was surprised, although she said she expected the mill would be sold if the price were right. When employees know more about Cerberus, Newman said, she and others would know more about how they feel about the sale.
Some employees fear they may lose their jobs.
Randy Ouellette, an employee from Livermore who was called back to work about six months ago, is worried about the sale and the overall outlook for the paper industry.
“I wonder how many machines will be shut down,” he said.
A No. 11 machine employee from Dixfield who asked to remain anonymous has been a paper mill employee for 23 years. He was quite concerned about the pending sale on Wednesday.
“I’m afraid I might lose my job. We hadn’t heard much until yesterday, although we had heard they might merge with another company,” he said.
People around town had similar reactions Wednesday.
Steven Child, manager of the lounge at the Penalty Box, felt nervous when he first heard the news.
The effect on the town will depend on what the new owners do, he said.
“If they up and go, the whole town will be in trouble,” he said. “We all have friends and relatives who work there. It’s all up in the air.”
Mike Chaisson of Rumford, a Sunday River Ski Resort employee, just hopes the new owners don’t do the same thing MeadWestvaco did when it bought the mill: lay off workers.
But Mary Richard, Rumford’s parking enforcement officer, said the mill has gone through many owners in the past, and this latest buy will probably be all right.
“I can’t imagine anyone buying the mill and not doing something with it,” she said.
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