Governor Releases Statement on Madison Paper Mill Layoffs

January 13, 2015

For Immediate Release: Tuesday, January 13, 2015
Contact: Adrienne Bennett, Press Secretary, 207-287-2531

AUGUSTA – Governor Paul R. LePage issued a statement today about the temporary layoff of about 150 employees at the UPM-Madison paper mill. Mill officials indicate the layoff is a result of increased energy costs.

“Sadly, this is an example of what we have been talking about since 2011,” said Governor LePage. “Maine’s high energy costs are costing us jobs. Our thoughts are with the affected employees, and we hope they will be back to work soon. This is why the legislature must act to do something about Maine’s high energy costs. We cannot afford to wait any longer.”

Madison president E.R. Drechsel wrote a letter to Maine’s Congressional delegation about the layoffs.

“We regret having to take this downtime, but conditions in the U.S. market for supercalendered paper, combined with the increased energy costs we incur during the cold winter months, require us to reduce production,” Drechsel wrote. “As our energy costs escalate, we are unable to pass on the increased cost to our customers, since they will simply buy from subsidized Canadian producers.”