Spring Grove-based Pixelle Specialty Solutions LLC announced Tuesday that it will close its mill in Jay, Maine, in the first quarter of 2023, affecting the jobs of its approximately 230 employees.
The mill produces specialty label and release papers, as well as industrial and packaging solutions for e-commerce and food service. Its two paper machines have a 230,000-ton annual capacity.
“The dedicated and skilled paper making employees in our mill in Jay, Maine, have worked tirelessly to achieve financial sustainability in challenging economic times,” Timothy R. Hess, president and CEO of Pixelle, said in a release.
“Economic forces beyond our control have combined to make profitable operations at the mill unsustainable. We are grateful for the efforts of the employees and are committed to assisting them with offers of continued employment at other Pixelle locations or outplacement support.”
The mill’s business and financial hurdles were compounded by an April 2020 rupture of one of its pulp digesters and catastrophic damage to the continued operability of the pulp mill. When possible, Pixelle said it will work with customers to transition their products to other Pixelle mills or to plan for volumes of orders in the limited production leading up to the closure.
David E. Dickerhoof Sr., the company’s vice president of sales and marketing, added: “Pixelle will continue to manufacture high-quality specialty solutions for our valued customers at our three specialty mills in Wisconsin, Pennsylvania and Ohio. Business conditions and the strength of our broad range of products will offer us continued growth opportunities in serving our customers in the specialty labels, food packaging, industrial specialties and premium printing markets.”
Paula Wolf is a freelance writer