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Great Northern Paper to Halt Production for 16 Weeks
01/23/2014 04:05 PM ET  

GNP spokesman Scott Tranchemontagne says production at the East Millinocket mill will stop after today's afternoon shift, in order to give the company time to restructure.

Great Northern Paper says it plans to halt production at its East Millinocket mill for 16 weeks, while it figures out how to lower production costs and cope with falling paper prices.

GNP spokesman Scott Tranchemontagne says production will stop after today's afternoon shift, but workers will be retained for at least two months to help with efforts to use energy and water more efficiently at the mill.

Tranchemontagne says the company is at a crossroads. "Like any business, Great Northern Paper must operate in a way that is sustainable over the long term," he says in a statement. "We take very seriously our responsibility to employees, customers, suppliers and investors. The responsible action at this time is to temporarily stop production and restructure the company."

Global competition in the industry has become even more fierce, Tranchemontagne says, driving paper prices down. He says the company's plans to power its two paper machines with natural gas have been shelved, due to "extremely volitile natural gas prices," and the high cost of conversion.

Tranchemontagne says the company will work with vendors to catch up on payments for supplies and maintain its relationships with customers.


 

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