ISLAND FALLS (AP) – National Starch and Chemical Co. is halting production at its Island Falls plant in June, resulting in the layoff of 38 workers.

The Bangor Daily News says the plant’s higher costs prompted the decision as the company moved to streamline its supply chain and concentrate production at larger facilities that can be run more economically.

The plant, which once employed 70 people, was built in the 1950s by local potato farmers and is the largest employer in Island Falls. It manufactures starch for processed foods and industry.

National Starch notified workers of the decision Tuesday. The company says the displaced employees will be eligible for severance.

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