Cate Street closes deal for two mills
The two shuttered Katahdin paper mills are officially under the ownership of a New Hampshire firm that plans to put hundreds of workers back on the payroll.
Cate Street Capital, through its new subsidiary Great Northern Paper Co. LLC, expects to return 215 workers to the East Millinocket mill by Oct. 10, and another 50 to 75 could be hired as the mill comes back online, the Bangor Daily News reported. Another 100 workers are expected to be hired when the Millinocket mill restarts in several months, depending on market conditions.
Gov. Paul LePage announced the final sale between Cate Street and the mills' previous owner, Brookfield Asset Management, on Thursday, two weeks after Cate Street closed in escrow on the deal. A sale price was not disclosed. Union members at the East Millinocket mill earlier this month gave tentative support to the sale, agreeing to hold their wages at rates that rank them as the lowest-paid papermakers in the state, the paper reported. Cate Street, which specializes in energy projects, has said it plans to invest about $25 million into the new venture.
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