Here's what Gov. LePage and others are saying about Sappi's $165M investment

COURTESY / MATTHEW GAGNON, WIKIMEDIA COMMONS Gov. Paul LePage applauded Sappi Ltd.'s announcement Wednesday that it was investing $165 million at its Somerset Mill in Skowhegan. But he also took the occasion to reiterate concerns about the high cost of energy that were a major theme of his State of the State address on Tuesday.

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By James McCarthy

There haven’t been too many good news headlines for Maine’s pulp and paper industry in recent years, given the closures of six mills since 2014. So it’s not surprising that Sappi Ltd.’s announcement on Wednesday that it will invest $165 million at its Somerset Mill in Skowhegan was one of the top stories of the day across Maine.

Here’s some additional perspective gleaned from news reports and releases sent to Mainebiz after the story went out in Wednesday’s Daily Report.

Gov. Paul LePage:

“This significant investment is welcome and demonstrates the commitment Sappi has to Maine. Sappi is capitalizing on an opportunity in the packaging market. Our paper mills are not dead, but they do need to reinvent themselves. Sappi has identified new markets and technologies that will ensure the company continues to make superior products and employ Mainers with good paying jobs for many years.”

While characterizing the announcement as “promising” news for Somerset County, LePage reiterated one of the themes of his State of the State Address to Maine legislators on Tuesday — namely, high energy costs and the negative impact on the paper industry and other Maine companies.

“We have slipped from 12th to the 11th highest energy prices in the nation. When Maine businesses are forced to pay more for energy and taxes it is less money the company is able to invest in its employees with higher wages and benefits. We must encourage our economy to grow and we do that by supporting good policies that do no harm to Mainers or the environment. We can achieve a balance between the economy and environment when we pass policies focusing on the lowest cost renewable energy resources and the least effect on the environment. It’s a win-win for Maine families, businesses and our natural resources.”

Dana Doran, executive director of Professional Logging Contractors of Maine:

“This decision by Sappi is great news for Maine’s loggers, truckers and economy. The Somerset Mill is a major consumer of wood fiber and an anchor for the forest products economy in our state. As other mills have closed, its importance has grown, and we applaud the vision and commitment to the future that this willingness to invest in Maine represents.”

Doran, whose members contribute $882 million to Maine’s $8.5 billion forest products industry, went on to say that the decision by Sappi comes as various efforts to revitalize Maine’s struggling forest economy are gaining momentum and cohesion.

“The goals of these moves include sustaining Maine’s existing forest products businesses; attracting capital investments and developing greater economic prosperity in the forest products sector across the state for both existing and new businesses; supporting the revitalization of Maine’s rural communities as places where people want to live, work and visit; and supporting and encouraging development and commercialization of new and existing technologies and uses of wood fiber, including heat and power, building materials and biofuels.”

Valmet Oyj, the global company hired to rebuild Paper Machine No. 1 at Sappi's Somerset Mill:

A press release issued by Valmet Oyj, a global company based in Finland that has been hired by Sappi to rebuild its Paper Machine No. 1 at the Somerset Mill, stated that when the project is completed, the paper machine will be able to produce both “coated paper and a variety of consumer packaging products” — thereby supporting Sappi North America’s diversification into packaging.

Dave King, Valmet's North America president:

”We are very happy to have been selected by Sappi North America for this important project. In many ways this project represents the strong and mutual commitment that has been established between Sappi and Valmet based on the good results achieved together during the previous projects. We look forward to strengthening our relationship further while working hard to help Sappi reach their project goals and business objectives.”

U.S. Rep. Bruce Poliquin, R-District 2:

“This strong investment is extremely encouraging and welcome news for Skowhegan and our entire state. Maine’s forest economy continues to be a solid and vibrant pillar of our state. I am poised to continue to do everything I can to help strengthen our forest economy and to create and protect good-paying jobs for our families and communities across Maine.”