A Millinocket paper mill that's struggling to compete at a time of high oil prices has halted production and is preparing to lay off more than 200 workers.

A spokesman for Katahdin Paper Co. said the plant made its last ton of paper this morning. Glenn Saucier said workers will be spending the next few days cleaning the mill's papermaking machine and putting it in "preservation mode" so it will be ready to go when production resumes.

Saucier said management will soon be meeting with union officials to discuss the pending layoffs. The union says some of the 208 workers at the mill who have seniority will be able to bump less experienced employees at Katahdin's sister mill in East Millinocket.