Madison Paper Mill Will Shut Down In May [UPDATE]

Officials announced plans today to shut down Madison Paper Industries and lay off about 214 people.

Finland-based UPM-Kymmene Inc. and Northern SC Paper Corp., a subsidiary of the New York Times, announced today the dissolution of the partnership that ran the Madison mill. Paper production is expected to cease by the end of May and the plant's hydro power generation facility will be sold.

This latest closure of a paper-manufacturing business will result in the laying off of 214 employees. A few others will stay on to maintain the building or to work in the hydro-power facility.

UPM President Ruud van den Berg said in a press release that 'demand for SC papers declined significantly in 2015 and the decline is expected to continue,' going on to say that the Madison mill has lost a significant amount of sales in the recent past.

Gov. Paul LePage released a statement Monday afternoon.

“We are saddened to hear that 214 Mainers will be losing their jobs, and our thoughts go out to them and their families,” said Governor LePage. “With the rapid decline of daily newspapers and other publications, it is not surprising the demand for supercalendered paper is plummeting. This unfortunate situation illustrates the challenges Maine companies face in the national and global marketplace. That’s why it is more important than ever to make sure Maine is competitive in attracting new job creators and retaining existing companies by lowering taxes, reducing energy costs and providing a welcoming atmosphere for businesses and capital investment.”