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Baldacci to discuss plans for mill closure

By Portland Press Herald Staff Report May 30, 2008 09:45 AM

MILLINOCKET - Gov. John Baldacci is plans a visit to Millinocket today to discuss the announcement by Katahdin Paper Co. that it plans to close its facility.

Baldacci is tentatively scheduled to meet with Town Manager Eugene Conlogue at 1 p.m. at the town hall.

Closing the mill will put 208 people out of work. The indefinite closure will be effective July 29.

Fraser Paper, which operates Katahdin's mills, on Thursday cited high energy prices for the closure. Fraser CEO Peter Gordon says fuel costs have doubled over the past 12 months. Last year, the Millinocket mill consumed more than 400,000 barrels of oil.

Paper produced at the Millinocket mill is used in the magazine, catalog and retail-insert industries. Katahdin's East Millinocket mill, which produces paper used in telephone directories, is not affected.

The Associated Press contributed to this report