After a dog of a week — the bankruptcy of Lincoln Pulp and Tissue, the impending closure of an Old Town pulp mill and analysts’ speculation that Verso Corp. is on the rocks — the Maine Pulp and Paper Association on Tuesday said recent news should serve as a wake-up call to policymakers.
Spokeswoman Kelsey Goldsmith said in a conference call with reporters that the industry needs help with trade parity, affordable fiber and energy, and with “realistic, market-based tax valuations.”
“Pulp and paper mills still comprise one of the state’s largest industries and government support is critical to this important segment of Maine’s economy and to the livelihood of the state’s rural communities,” she said.
Despite its slow, steady decline, the industry still has an economic impact of $8 billion a year, Goldsmith said. Forest products account for nearly one-third of the state’s exports.
In a state with millions of trees, securing affordable wood remains an issue, she said, citing reports that Maine has one of the highest wood costs in the country.
Private landowners would rather keep it for logs, sell the real estate or leave it be.
“There are unprecedentedly high levels of wood available in southern Maine; however, land ownership surveys indicate that only about 38 percent of landowners are interested in harvesting,” Goldsmith said. “And, as demand for firewood, pellets and other biomass increases, the price of fiber for Maine’s pulp and paper mills has become prohibitive.”
She stressed the need for more affordable energy and a better way to get goods to market.
“The most recent figures still show Maine as the No. 2 papermaking state, second only to Wisconsin,” she said. “The success of the industry has never been more critical and the need for action by lawmakers and industry partners has never been more acute.”
The association has called a daylong summit in Bangor on Nov. 17 to discuss how to navigate the future and challenges ahead.
Goldsmith didn’t respond to questions about specific action the industry is looking for from policymakers.
Pulp and paper once employed 18,000 people in Maine. In the first quarter of 2015, that figure was down to 5,500, according to Glenn Mills, chief economist at the Maine Department of Labor’s Center for Workforce Research.
More jobs have been shed this year, with Verso Corp. in Jay recently announcing 300 positions being taken out of the mill this winter through layoffs and early retirements.
kskelton@sunjournal.com
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