RUMFORD (NEWS CENTER Maine) -- The Rumford mill has been sold as part of a packaged deal to repay 'significant' outstanding debt, according to the owning company, Catalyst Paper.
The mill currently employs 675 Mainers. The buyer says no one will lose jobs in this transition.
The company agreed to sell its U.S. operations to ND Paper, a wholly owned subsidiary of Nine Dragons Paper, for $175 million. A mill in Wisconsin and an operations center in Ohio were part of the deal.
"We’re proud of what our employees have accomplished at the Biron and Rumford mills and the Dayton operations center. Their hard work and dedication have vastly improved these operations," said Catalyst CEO and president Ned Dwyer. "Despite these improvements, Catalyst has made the business decision to sell these assets. This will allow us to re-pay a significant portion of our outstanding debt, and focus on our Canadian operations."
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In April 2016, Catalyst announced the mill would restart a machine, while at the same time introducing an uncoated freesheet offset paper grade being made on the machine.
"I want to thank all our employees for the contribution they’ve made during the time they have been part of the Catalyst family." Dwyer added.
The buyer, Nine Dragons, is run by Chair Yan Cheung of China, who has a net worth of $2.1 billion, according to Forbes.
NEWS CENTER Maine spoke with Cheung on the phone Thursday about her plans for the Rumford Mill. The conversation was translated by ND Paper CEO Ken Liu. "We look forward to working with [the current employees]. For us, people at the mill is the most valuable asset here in this organization," she said. "For Nine Dragons as a company, our core belief and our core value is centered around the development and the growth of our people. So to answer your question, we look forward to keeping the 675 people and more importantly, we look forward to growing with the 675 people, together."