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July 29, 2025

In Skowhegan, Sappi completes $500M paper mill update

Sappi paper mill interior Photo / Courtesy Kirk Ross At Sappi's Somerset Mill, the "winder" section is where the finished paper is wound into giant rolls for storage and shipping. At this stage, the product has completed the full transformation from pulp to high-quality paper.
By Peter Van Allen

Sappi North America said this week that it is delivering commercial product to customers following the $500 million conversion and expansion of Paper Machine No. 2 at its Somerset Mill in Skowhegan.

Qualification processes are being completed with a number of customers, and production will ramp up to full volumes through 2026.

The $500 million investment doubles the production capacity of Paper Machine No. 2 and, the company said, positions the Somerset Mill as one of North America’s most advanced production sites for high-performance solid bleached sulfate paperboard. 

It also drives Sappi's shift from the graphic paper market — now in decline — to growing sectors like packaging for food, beverages and consumer goods. 

“Sappi’s investment is more than just an upgrade to a paper machine, it’s a long-term commitment to our people and our community in Maine,” said Mike Haws, president and CEO of Sappi North America. “Our team at Somerset pulled off the largest rebuild in our company’s history, all while continuing daily operations. Their dedication and skill are what made this possible."

Sappi has 780 employees at the Somerset Mill and another 400 at sites in Westbrook and Portland.

Sappi paper mill interior
Photo / Courtesy Bradford DiFranco, Wicked Mountain Films
At Sappi's Somerset Mill, the "coating" section is where a smooth, even layer of coating is applied to the paper to enhance its printability, appearance and performance.

$700 million invested

mike haws
Courtesy / Sappi Ltd.
Mike Haws succeeds Mark Gardner as CEO of Boston-based Sappi North America.

Haws, who joined Sappi in 2012 as managing director of the Somerset Mill, was a 2025 Mainebiz Business Leader of the Year.

Under his leadership, Sappi has invested over $700 million in the Skowhegan facility since 2018, first with upgrades to Paper Machine No. 1 and now with the rebuild of No. 2.

At the peak of construction, there were an estimated 1,000 contractors on site, said Blue Keim, managing director of operations at the Somerset Mill. 

They were "supporting not just the mill but many local businesses in Somerset County," Keim said. 

“This kind of investment gives Maine’s manufacturing sector a strong foothold in the global economy,” said Haws. “It keeps our mills competitive, and our people employed in good, meaningful work.” 

About Sappi

Sappi North America Inc., which is based in Boston, is a subsidiary for Sappi Ltd., which is based in South Africa. 

Sappi NA has a corporate office in Portland and mills in Skowhegan and Westbrook, as well as Cloquet, Minn., and Matane, Quebec.

Sappi NA has 2,100 employees in North America, including 1,180 at three sites in Maine.

Sappi NA uses wood fiber to create packaging, specialty papers, graphic papers and more. 

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