The truck gate at Pixelle Androscoggin Mill in Jay is padlocked March 9, a day after the paper mill ceased operations. The property was sold Thursday to Kansas-based JGT2, which plans to redevelop the north side and demolish the south side, partner Tony McDonald said. Andree Kehn/Sun Journal file
JAY — A Kansas-based company announced Thursday that it has purchased the defunct Androscoggin paper mill buildings and 1,000 acres on Riley Road.
JGT2 Redevelopment, based in Kansas, concluded a three-day closing Thursday to take ownership from Pixelle Specialty Solutions based in Pennsylvania, lead partner in JGT2 Tony McDonald said early Thursday evening.
Pixelle stopped production of paper in March and shut down the mill permanently.
“Now we are able to really start on our redevelopment in earnest,” McDonald said. “Up until now we have only been able to talk because we didn’t own the property. Now we can go to work on redevelopment.”
The plan is to demolish the south end of the mill and redevelop the north side.
“We’ve got a lot of demolition work to do, a lot of equipment to sell,” he said.
He expects it to take about 12 to 18 months but is already in discussion with a number of potential tenants.
“It is going to work out well for everyone,” McDonald said.
He anticipates a mix of industrial, manufacturing and distribution components.
“I think we’ve got a manufacturer who will be seeking approval for environmental permits and redevelopment permits.
The Maine Department of Environmental Protection approved the transfer of air, solid waste and water permits from Pixelle Specialty Solutions to JGT2 Redevelopment on Dec. 6.
JGT2 has been working on buying the property since earlier this year and redevelop the mill and cogeneration facility into other industrial uses.
According to the DEP orders, eight solid waste permits, two air permits and one water permit were transferred.
“That decision approves the transfer of all the DEP permits and will be effective upon the closing of the transaction between Pixelle and JGT2,” Mark Margerum of the DEP wrote in an email Thursday.
JGT2 Redevelopment proposes to restart the cogeneration plant to produce power to sell to the grid while redeveloping the properties associated with the former mill, McDonald said in October.
Business terms had all been negotiated and agreed upon. Lawyers were working through the process, he said then.
Some of the permits related to the natural-gas-fired cogeneration plant, which the company also plans to buy, will be reviewed by a federal government agency. It was unclear Thursday if federal permits have been approved.
JGT2 will also work to close two active landfills and to do what is necessary, if anything, on a third landfill on the site that is closed.
Additionally, it is considering resizing the wastewater treatment system to match the new industrial uses for the facility.
Send questions/comments to the editors.
