November 19, 2013

Owner to stop coated-paper machine at Rumford plant

The machine manufactures about 300 tons of coated paper per day, and will affect an unspecified number of employees.

From Staff Reports

NewPage Holdings Inc. said on Tuesday it would indefinitely idle a machine at its Rumford plant that produces coated paper for magazines and catalogs due to weak customer demand.

The company said the No. 12 paper machine will be idled by mid-February, affecting an unspecified number of employees. The plant in Rumford employs a total of 850 people.

The No. 12 machine manufactures about 300 tons of coated paper per day.

“We continue to operate in a weak commercial environment and needed to take action,” said George Martin, president and chief executive officer for NewPage.

NewPage is headquartered in Miamisburg, Ohio, and owns paper mills in Kentucky, Maine, Maryland, Michigan, Minnesota and Wisconsin with a total annual production capacity of about 3.5 million tons of paper.

“We remain committed to running our operations in the most efficient manner possible as we balance our production to customer demand,” said Mark Lukacs, senior vice president of operations for NewPage. “Based on customer demand, this downtime is necessary to maintain that balance. Our flexible mill system enables us to fully service our customers’ needs going forward. We will continue to consider the need for additional downtime as demand conditions unfold.”

Last year, NewPage said it completed a financial restructuring and emerged from bankruptcy protection.

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