RUMFORD, Maine - A Canadian company is entering into an agreement to buy the Rumford Paper mill.
Catalyst Paper of British Columbia wants to buy the mill as part of a $74 million deal to purchase two mills owned by NewPage Corp. The other mill is in Wisconsin.
According to paperwork filed with the Securities and Exchange Commission Thursday, the proposed deal aims to address potential antitrust concerns related to the proposed $1.4 billion merger between NewPage and Verso Paper, which owns two mills in Maine, in Bucksport and Jay.
John Williams, president of the Maine Pulp and Paper Association, says he's encouraged by the news. "Everything I know is that Catalyst wants the mill because they want to keep it running so that's good news for area."
"The Rumford Maine mill is a perfect fit with what we do," says Catalyst CEO Joe Nemeth. He says the purchase will expand the company's product line, because the Rumford mill produces a higher-grade coated paper than Catalyst currently does. "So it's a wonderful and complementary extension of what we do, so we'll now have the full product range of all printing and writing paper grades manufactured within the company."
The deal is contingent on the Verso-New Page merger going ahead - something which the two companies anticipate happening by the end of the year. Verso's mill in Bucksport is planned for closure on Dec. 1. The Rumford Paper mill is that town's largest taxpayer, employing about 800 people.