Madison paper mill plans to lay off employees and cut production as temporary closure nears

Industrials Associated Press

A Maine paper mill plans to temporarily lay off many of its employees starting this month as it scales back production.

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The layoffs at Madison Paper Industries will take place during a period of several weeks. Company president Russ Drechsel made the announcement in a Tuesday letter to Maine's U.S. senators and representatives. The company employs about 220 people. He declined to say exactly how many will be laid off.

The letter says the mill will close from Jan. 24 to around Feb. 9.

Dreschel says in the letter that market conditions and increased energy costs require the facility to cut production. It also says the mill has struggled since the Nova Scotia government provided more than $125 million in subsidies to restart a Canadian paper mill in Port Hawkesbury.