October 18, 2018

Paper machine sold to Chinese company, paving way for Madison mill's redevelopment

Courtesy / New Mill Capital Holdings
Courtesy / New Mill Capital Holdings
The Valmet 7.2M paper machine at the shuttered Madison Paper Industries mill, which was upgraded in 2012, has been sold by New Mill Capital Holdings to a Chinese company. The sale is seen as beneficial to the hoped-for redevelopment of the former paper mill.

A Chinese company has purchased the paper machine at the shuttered Madison Paper Industries mill in Madison, which one of the mill's current owners says will make it easier to market the 550,000-square-foot building.

"Now the machine is being removed, I think it will be a lot easier for someone to envision the space," Greg Schain, principal of New Mill Capital Holdings, a partnership that bought the mill in December, told the Waterville Sentinel. "It's a good building that's wide open, obviously with a ton of power, space and infrastructure, so it would be a great place to operate."

The purchase price and name of the Chinese company were not disclosed, the newspaper reported. The Valmet 7.2M paper machine, which was upgraded in 2012, was listed for sale via private negotiation in May, when New Mill Capital Holdings held a three-day auction to sell more than 3,000 pieces of paper mill equipment, including debarkers, log grinders, slashers, screens, vacuum pumps, stainless pumps, cleaners, valves, refiners, hammer mills, pulpers, roll grinders and compressors as well as a large quantity maintenance equipment, plant support, spare parts and motor inventory.

New Mill Capital Holdings of New York, in a partnership with Perry Videx of Hainesport, N.J., and Infinity Asset Solutions of Toronto acquired the mill assets of Madison Paper Industries, including the real estate of the main paper mill site and all mill equipment, in December 2016. The mill closed in May 2016, putting 214 people out of work.

Goal: Market mill for other industrial uses

Courtesy / CBRE | The Boulos Co.
Courtesy / CBRE | The Boulos Co.
An aerial view of the Madison paper mill, which has an asking price of $2.5 million.

In a news release announcing its 2016 acquisition, New Mill Capital and its partners said their goal was "to sell certain mill assets that are no longer usable on the property, as well as demolish some structures that are obsolete."

"Once that process is complete, the property will be re-marketed for alternative industrial uses," the new owners stated. "Given the site's abundant supply of both power and natural gas, as well as a clear height of over 50 feet, the property is a uniquely attractive asset for a variety of heavy industries."

At that time, Schain said the new owners planned to work with local and state officials "to identify new uses for the mill site."

"Bringing new economic life to the property is a key component to this investment for us, and we feel the site's ample infrastructure and the strong area labor force will be attractive for new industries," he said.

CBRE | The Boulos Co. is overseeing the sale or lease of the former paper mill on 19 acres in Madison.

According to the marketing materials on CBRE's website, asking price for the mill is $2.5 million and the lease rate is $250,000 per year.

The mill's assessed value, according to CBRE | The Boulos Co., is $4.67 million.

It's described as an "excellent opportunity to re-purpose the facility," with availability of hydroelectric power, natural gas, water, municipal waste water treatment and "substantial buildings in excellent condition."


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