About 20 employees at Newark Paperboard Products in Monmouth will lose their jobs within the next two months when the plant closes. David Ascher, vice president of New Jersey-based Newark Group, informed employees Friday that the plant will close within 60 days, according to the Kennebec Journal.
Ascher didn't give a reason for closing the plant, which makes paper tubes, other than to cite a desire for efficiency. The plant's work will be transferred to its other recycled-packaging plants in 16 states, Canada, Spain and Germany. The Newark Group arrived in Maine in 1997 when it bought the Yorktowne Paper Mill and Gardiner Paperboard, which closed in 2001.
The company filed for Chapter 11 bankruptcy in June 2010, emerging in August the same year with two loans totaling $170 million.