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Rubber and Wood June 07, 2016 10:30:55 AM

Twin Rivers announces 49 layoffs at Madawaska paper mill

Paul Ploumis
ScrapMonster Author
Lightweight specialty paper and dimensional lumber manufacturer, Twin Rivers Paper Company plans to lay off 49 workers at its Madawaska, Maine mill by end-July.

Twin Rivers announces 49 layoffs at Madawaska paper mill

AUBURN (Scrap Monster):  Lightweight specialty paper and dimensional lumber manufacturer, Twin Rivers Paper Company plans to lay off 49 workers at its Madawaska, Maine mill by end-July. This is on account of the company’s plan to shut down machine at the mill. Twin Rivers had earlier announced that it intends to shut down its No.3 paper machine at the facility which used to produce variety of coated and uncoated grades of paper. After the closure of PM3, the mill will have four papermaking machines left. The shutdown is part of company’s efforts to maximize productivity by focusing on growth-oriented market segments.

The layoffs will affect 10% of employees at the Madawaska paper mill will employs nearly 500 people altogether. In a company release, chief operating officer John Reichert noted that it was a tough decision to take. Twin Rivers will work closely with unions to provide all resources to support the affected employees. The company will provide opportunities for some of the affected employees to apply for several open positions in the mill. However, majority of them would have to be laid off, he added.

Meantime, Julie Rabinowitz, spokeswoman for the Maine Department of Labor stated that Rapid Response team would schedule meetings with affected workers to educate them on re-employment opportunities, health insurance options and other resources. Madawaska Town Manager Ryan Pelletier noted that the town would co-ordinate with mill management, state and federal agencies to assist affected employees who reside in Madawaska.

According to company news release, it plans to make strategic realignment of its operations to position the company for the future. As part of the plan, PM3 will be permanently closed by end-July. In addition, substantial upgrade will be made to PM8. Twin Rivers plans to invest nearly $12 million to improve the machine’s capability and productivity. The upgrade is expected to be completed by 2017. The investment will transform PM8 into one of the largest producers of lightweight technical specialties in North America. It must be noted that Twin Rivers has made capital investments of nearly $47 million since 2013, when it took ownership of the mill.

The company had recently appointed John Reichert to the position of Chief Operating Officer, assuming responsibility for Manufacturing, Maintenance & Engineering, Environment, Human Resources and Procurement & Logistics for all three Twin Rivers’ operations including the Madawaska Paper Mill, Edmundston Pulp Mill and Plaster Rock Lumber Mill.

Twin Rivers Paper Company is a specialty paper company manufacturing high-quality paper, pulp and lumber. It manufactures packaging, label, publishing and lumber products for targeted markets and applications. Lumber and pulp operations are located in New Brunswick and the paper operation is based in Maine. The company is a major contributor to the region’s economy. An economic impact study conducted in 2014 indicates that the company is responsible for $268 million (CAD) per annum in economic output at its New Brunswick operations and approximately $344 million (USD) per annum at its operations in Maine.

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