167--Fraser Papers, Gorham New Hampshire
Fraser Papers laying off 167 at Gorham mill
By LORNA COLQUHOUN
New Hampshire Union Leader Correspondent
GORHAM – The last operating paper mill in Coos County will shut down two paper machines in April, at a cost of 167 jobs, reducing the work force of an industry that once employed thousands here and in neighboring Berlin to 180.
Officials at Fraser Papers, which bought and restarted two paper mills in 2002, advised Gov. John Lynch yesterday that the layoffs would take effect in 60 days.
It is another painful jab to northern New Hampshire, whose economy was once driven by the paper industry. Earlier this year, 303 workers at Wausau Paper in Groveton were left without jobs when that paper mill closed. [2 other paper mills closed in recent time, in addition to a reported over 94 mills closed since so-called free trade was passed by Bill Clinton]
"This is a serious blow to the workers, their families and the entire community. New Hampshire state government is committed to helping them through this difficult time and to helping bring jobs to the North Country," Lynch said.
Cascade Mill circa 1920 [picture at website link below]
The industry has been struggling and while the news out of Fraser Paper was not unexpected, the hope in the region was that production would carry on until the economy could be diversified.
"Notices were handed out today," Gorham Town Manager Bill Jackson said last night. "Fraser is shutting down all but two machines and laying off 167 people -- that's about half the work force."
The news comes as the town is preparing its budget for next month's town meeting. Selectmen last night met in an emergency session to discuss the situation and prepare for tonight's scheduled budget hearing.
"This mill is all in Gorham," Jackson said. "We all knew that this would happen at some point. Now we have to figure out how to handle it and how to run town government."
In its announcement late yesterday, Fraser Papers President Peter Gordon cited rising costs and operating losses as a reason for the curtailment of the No. 13 and No. 14 paper machines for an indefinite period beginning April 13.
"The impact of rising input costs, particularly oil and market pulp, has resulted in significant operating losses for certain of the grades produced at the Gorham mill," Gordon said. "Increases in the selling price of commodity freesheet products have not been sufficient to offset these rising costs."
Lynch said the state has been working with Fraser on the issue of rising cost of oil and obtaining pulp to feed the paper mill.
"New Hampshire's Department of Resources and Economic Development has been working closely with Fraser, and will continue to try to partner with them to help address these issues," Lynch said.
Production on the No. 11 and No. 19 machines, which produce specialty printing papers and industrial towel will continue. The curtailment of the two machines, in addition to No. 12, which went down in 2007, represent an annual production capacity of 109,000 tons.
In a statement yesterday, company officials said the mill will fulfill its existing commitments to customers and operate at current production levels until April 13.
"If cost pressures ease and the profitability for the grades produced on these machines improves before April 13, the company may cancel or defer the curtailments," according to the statement.
Fraser Papers bought the mills in Berlin and Gorham in 2002, nearly a year after they were abruptly shuttered when former owner American Tissue went bankrupt in 2001. The Berlin pulp mill closed its doors for good, at a loss of 250 jobs, in 2006; that mill has been dismantled.
Following the announcement by Fraser, Lynch said he had been in touch with the state's rapid response team to discuss plans to help the workers.
"I know that the most important assistance we can give workers is help getting a new job," he said, adding that he is continuing his push in the Legislature to pass his tax credit plan to attract jobs in the county. "We are also continuing to aggressively reach out to businesses to encourage them to bring jobs to the North Country."
The state's Rapid Response team will begin an assessment of workers from Fraser Paper to determine what their needs are in order to help them find new jobs, including job counseling and retraining.
The state will also be working with employees and the company to extend federal Trade Act Assistance benefits.
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