Governor Baldacci announces signing of mill agreement

October 12, 2006
By Greta Sproul

             Governor John Baldacci visited Old Town last week to announce the signing of the purchase and sale agreement with Georgia-Pacific for the company’s Old Town mill site. The signing of the agreement took place on Thursday morning at the Public Safety Building on Brunswick Street.

            “The future of the mill site is in good hands,” the Governor said. “I want to thank Georgia-Pacific for all they have done to get to this point. Tamarack Energy, Hallowell International, LLC.Red Shield Energy and Lamtec Inc. all have put forward plans for the future that will benefit the community and the state. We are witnessing a very exciting time for the city of Old Town. “

            Joseph Moeller, G-P’s chairman and chief executive officer, said that his company was pleased to be completing the deal with the Governor.

            “We and the state are working to complete closing by the end of this month.,” he said. ‘Georgia-Pacific’s entire leadership team wants to thank the Governor, his team, and other state and local officials for their commitment and tireless efforts to work together to secure a winning future for the facility and community.”

            Georgia-Pacific closed their Old Town mill last March, affecting over 400 workers in 40 towns. The former mill workers were paid for an additional 60 day period after the closing, although a skeleton crew stayed on to maintain the facility throughout the ensuing sales negotiations. During that time, many people believed that Cascades, Inc of Montreal was the frontrunner in the negotiations until the Governor’s office announced last week that the state would be purchasing the mill and transforming it into a state of the art cellulose biofuel facility with a goal of four or five different manufacturers employing more than 1,000 workers. The transformation of the mill into a facility housing multiple energy manufacturers marks the first time that a closed pulp and paper mill in Maine has been reused for new state-of-the-art production that will transition new employment opportunities as well as create new industry.

            At Thursday signing, G-P chairman and chief executive officer Joseph W. Moeller said that his company was pleased to be able to successfully complete the deal with the state.

            “We and the state are working to complete closing by the end of this month,” he said. “Georgia-Pacific’s entire leadership team wants to thank the Governor, his team, and other state and local officials for their commitment and tireless efforts to work together to secure a winning future for the facility and community.”

            The three companies that will be moving into the site after the completion of the sales agreement are Tamarack Energy, a developer of renewable energy, Hallowell International, LLC/Red Shield Energy, a maker of home heating and cooling products, and Lamtec Inc., a manufacturer of pressure sensitive labels. Once the three companies are installed and fully operational, the site is expected to employ 250 workers. All three companies have said that they will first offer jobs to former mill workers before advertising them on the open market. Despite that fact, all three companies have also stated that they will not give preference to union members over non-union members during the hiring process. The jobs associated with Red Shield are the only jobs that have been identified as union jobs. All workers interested in working for any of the three companies will have to go through an application process. Former mill workers who need to be trained for specific jobs will receive that training in part through $50,000 allotted by the Governor’s Initiative Fund.

            “As I have said before, the outlook for this site and this town is bright,” the Governor said. “This is an exciting opportunity not just for the city of Old Town, but for the entire state of Maine. Maine is in the beginning stages of new technology that holds great promise and it’s being developed at the University of Maine.”

            The Governor also made a point of thanking congressional and local delegation members for their part in bringing the purchase agreement to fruition.