AUGUSTA – Republican legislative leaders expressed deep regret today about the closing of a Georgia-Pacific paper mill in Old Town. The Atlanta-based company announced today that its pulp and tissue paper manufacturing plant is shutting down, putting more than 400 employees out of work. Production has ceased and the plant is winding down mill and shipping operations.

“Our sympathies are with the workers and all the people of Old Town,” said Rep. David Bowles, leader of the House Republicans. “We sincerely hope that a buyer will come forward and that the mill can be saved.”

The mill was first established in 1882 and was purchased by Georgia-Pacific in 2000. Old Town sits on the edge of the Great North Woods, on several islands in the Penobscot River. The community has about 8,500 residents.

“This is the kind of difficulty that we had hoped to avoid,” said Sen. Paul Davis, leader of the Senate Republicans. “As we look for ways to help the good people of Old Town who are losing their jobs, we should use this as an opportunity to review the policies of state government.”

Sen. Carol Weston, assistant leader of the Senate Republicans, said, “Jobs in Maine are precious, and before we worry about adding new ones we need make sure to keep the jobs we have. We need to know what the state can do to encourage companies here to compete so they can avoid failure.”

George-Pacific spokesman Robert Burns said the company will work with state officials over the next 60 days to try to find a suitable buyer for the mill. While some employees will be involved in the mill shutdown, employees released today will be placed on a 60-day excused leave of absence and receive full pay and benefits during that period.

The State of Maine in recent years has invested millions of dollars trying to keep the mill in operation. The state upgraded railroad systems and assumed the risk for a Georgia-Pacific landfill in hopes of keeping the company in Maine

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