Gov. John Baldacci reacted optimistically to news Tuesday that International Paper Company would be selling its two mills in Maine as part of a massive restructuring of its operations and was assured by the head of the company the mills would remain open until they are sold.
“Maine mills are profitable and will stay in operation during this process,” he said, adding he was confident they would be sold to a company interested in developing the market for the kind of paper the mills produce. Maine mills create coated paper used in magazines and catalogs.
“There is interest in the industry for these facilities,” Baldacci said. “There’s good potential to strengthen those operations.”
International Paper, the world’s largest forest products company, put out a press release earlier in the day saying they were selling billions of dollars in businesses in order to strengthen their core products and reduce debt.
The company is considering moving it headquarters in Stamford, Conn., to Memphis and will downsize, close or sell seven mills around the country.
The governor said he didn’t know which companies would be interested in the mills, but said that would be known sometime this fall.
“These facilities are very profitable and highly sought after,” he said.
Asked if the sale to another company would mean cuts in jobs, Baldacci said International Paper has no way of knowing at this time. “That’s not their call,” he said.
The Bucksport Mill employs 1,000 people and the Androscoggin Mill in Jay employs more than 1,200, according to the IP website.
Sen. Susan Collins, R-Maine, told the Associated Press she too had spoken to IP CEO John Faraci and said, “he was confident that buyers will be found easily and predicted there would not be an impact on employment levels.”
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