Sappi to spend $1148M to rebuild Skowhegan mill

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SKOWHEGAN, Maine — Boston-based Sappi North America announced Thursday that it would invest $418 million to rebuild a paper machine at its Somerset Mill in Skowhegan to make packaging and specialty papers.

The investment at the mill will "increase its Paper Machine No. 2's capacity and produce solid bleached sulfate board products, a sustainable alternative to plastic packaging," the company said in a release.

"Somerset's existing world-class infrastructure and success in producing high quality SBS products, together with its talented workforce, make the mill an excellent and obvious choice for this investment," Sappi North America President and CEO Mike Haws said in a statement. "Increasing our flexibility and expanding the paper mill's capability and capacity will ensure that we continue to make superior products at Somerset for years to come."

Major #announcement from Sappi NA! We're investing $418 million at our #Somerset Mill to rebuild Paper Machine 2 to produce more SBS, a sustainable alternative to plastic packaging.Read the details, https://t.co/hbMRW8iZqY. pic.twitter.com/WkJgTpQb2l

The three paper machines at the Somerset Mill, including one that was already rebuilt, produce nearly one million metric tons of paper and 525,000 metric tons of paper pulp each year, according to the company. The mill employs 754. Sappi's Westbrook Mill, at the former S.D. Warren Company, employs 185.

Sappi North America is a subsidiary of Sappi Limited, based in Johannesburg, South Africa, which employs more than 12,000 people worldwide.

Gov. Janet Mills welcomed the announcement, saying it would support workers in Skowhegan and the state.

"Diversifying the forest products we make right here in Maine will strengthen our forest products sector and sustain the good-paying jobs it creates," Mills said in a release. "My administration will continue to stand by Sappi and the hardworking men and women who work there as we strengthen Maine's economy in the years to come."

Sens. Susan Collins and Angus King also applauded the announcement in a joint news release Thursday.

"The forest products industry is a vital part of our state's economy and identity, particularly in rural communities," Collins and King said. "As the industry embraces new opportunities, it's essential that companies make the necessary investments to evolve with the market and secure long-term success. Sappi has done just that with their recent upgrades at the Somerset Mill in Skowhegan, which supports hundreds of Maine jobs.

"This investment will help Sappi reach new customers, support their hard-working employees, and keep the local economy strong. We are excited about this upcoming project and look forward to working alongside Sappi and other state leaders to find new opportunities and markets for Maine's forest products industry."

Sappi said it expects the mill to come online in early 2025.

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