Branching out: $14M in state grants to support forest industry

A large green harvester tractor picks up logs in the woods

File photo Part of the $20 million Maine Jobs & Recovery Plan awards will support forward-looking industry projects that address new market demands, provide sustainable products, or otherwise advance the industry's long-term sustainability.

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By Renee Cordes

The Forest Recovery Initiative is one of three programs supporting the recovery of Maine’s heritage industries – forestry, fishing and farming – from impacts of the pandemic. To date, the Governor’s Jobs Plan has awarded around $41 million in recovery funds to 392 businesses across all 16 counties in Maine.
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Nineteen Maine forestry companies will share $14 million in state grants for a range of improvement projects, Gov. Janet Mills announced.

Funding comes from the final round of the $20 million Forest Recovery Initiative of the governor's Maine Jobs & Recovery Plan.

Recipients include ND Paper in Rumford, which will receive $1 million to boost the efficiency of its R15 paper machine. Also receiving $1 million are Louisiana-Pacific Corp. (NYSE: LPX) for improvements at LP Houlton in Aroostook County; Bright Wood Corp. for a project in Waterville; Casco-based Hancock Lumber and wood-fiber insulation firm GO Lab.

The Forest Recovery Initiative, unveiled by Mills in November 2021, aims to support Maine’s forest products industry and the people it employs, create and sustain jobs in rural Maine, and strengthen the state’s economy.

In March, the first round of awards provided $6 million in financial relief to 219 forest products businesses that saw negative impacts from the pandemic.

Awards made through the program's second and final round will support forward-looking projects that address new market demands, provide new sustainable products or otherwise advance forestry's long-term stability.

The awards cover projects across 10 Maine counties, and the $14 million in funding will leverage more than $625 million in private matching funds.

“Maine’s forest products industry is not only a key part of our state’s heritage, but also a cornerstone of our economic future," Mills said. "These grant awards will help Maine forestry companies on the cutting edge compete on the world stage. My administration will continue to work to ensure that our forest products sector remains strong for the years to come.”

Thanking Mills for her vision and support for the industry, Maine Forest Products Council Executive Director Pat Strauch said, "Through private and public investments, our industry will continue to adapt, thrive and create opportunities throughout rural Maine."

The program is one of three initiatives to support the recovery of Maine’s heritage industries – forestry, fishing and farming – from impacts of the pandemic. To date, the Governor’s Jobs Plan has awarded around $41 million in recovery funds to 392 businesses in these heritage sectors across all 16 counties in Maine.

The Forest Recovery Initiative is being administered by the Maine Technology Institute. The 19 projects receiving grants were selected of 62 applications that came in seeking $77 million in funding.