Rumford Branch, RUPO / PORU

These types of stories should be driving investments in diversifying the railroad to meet the requirements of the container business in Northern New England.

RUPO/PORU have been running 7 days a week as far as I know. At Capacity.

Month and a half later, any updates? New Page vanished from the Earth? Jobs still running maxed out 7 days a week? Somewhere in between?

Still hearing them on the radio. Don't know if it is still 7 days or not.

Thanks.

I would be far more inclined to believe rumors of an acquisition by Verso than anything else.

Verso's almost as bad off as New Page. I doubt you'll see them making any acquisitions in the near future. There is nothing surprising about a papermill closing these days...

http://bangordailynews.com/2013/11/19/b ... s-unknown/" onclick="window.open(this.href);return false;

riffian wrote:http://bangordailynews.com/2013/11/19/b ... s-unknown/

Thanks for the link! Please don't forget to provide a short fair-use quote; occasionally web sites will change their links and we might not be able to find the article again.

Bangor Daily News wrote:The company is stopping production on its No. 12 paper machine, which currently produces roughly 300 tons per day of coated paper used for magazines and catalogs. It is both the oldest — built in 1948 — and smallest of the mill’s three paper machines, Lyons said. The mill’s total annual production is approximately 550,000 tons of coated paper.

While Lyons wouldn’t estimate how many employees will be impacted, Ron Hemingway, president of the Local 900 United Steelworkers union, told the Sun Journal that “around 120 people” may be affected by the shutdown of the No. 12 paper machine.

Source: http://bangordailynews.com/2013/11/19/b ... s-unknown/" onclick="window.open(this.href);return false;

Given the increasing cost of labor in China and the likely onset of environmental controls there this may be the last paper machine shutdown in Maine we see for a long time to come.

I don't follow... what does this have to do with China?

Cowford wrote:I don't follow... what does this have to do with China?

A lot of magazine, and catalog printing is done off-shore...usually in China.

I doubt a lot of magazines are published offshore, given it would take a 1-2 months to distribute what is a perishable product. Imported print media represents only 7% of domestic demand; exports are actually greater than imports.

Cowford wrote:I doubt a lot of magazines are published offshore, given it would take a 1-2 months to distribute what is a perishable product. Imported print media represents only 7% of domestic demand; exports are actually greater than imports.

I don't know about magazine printing but my understanding from people who work in the paper industry in Maine is that they are in fact facing significant competition from Chinese paper mills. That being the case, increasing labor costs will go a long way to eliminate this advantage.

It made quite a splash when announced, but the last I knew the Verso/New Page deal was in trouble as Verso was having trouble raising funds. So, after a long spell of quiet it appears there is some news. http://investor.versopaper.com/released ... eID=817170" onclick="window.open(this.href);return false; More than news, it appears the deal went through and will close this year.

I sincerely hope this brings better fortunes to Verso, Rumford, Jay, Bucksport and the 2 branches in existence for the Verso mills.