A buyer for the former pulp mill in Old Town has been found, according to a state official.

Rosaire Pelletier, senior forest products adviser at the Maine Department of Economic and Community Development, said Monday that a buyer was found for Old Town Fuel & Fiber. He said the official paperwork has not been signed yet, but that it was “positive news.”

“Right now it’s still in the early stage,” he said. “They’re negotiating and there’s some legal aspect to it. But it’s progressing well and we hope that this week we’d have some positive announcement for the Old Town mill.”

New York-based private equity firm Patriarch Partners closed Old Town Fuel & Fiber indefinitely Aug. 14, furloughing 180 workers. The mill, which made pulp, was also researching the development of alternative biofuels made from wood.

Pelletier declined to provide any additional information about the identity of the potential buyer, but he confirmed that its intention would be to restart the pulp mill and rehire the workers who were laid off when Patriarch Partners shut the mill down.

Gov. Paul LePage also reportedly told WCSH-TV on Monday that a buyer for the pulp mill had been found. Adrienne Bennett, LePage’s press secretary, did not return an email late Monday seeking confirmation of the governor’s comments.

The Old Town mill is one of several mills shopping for new owners to keep them viable.

There are reportedly several bidders on the idled Great Northern Paper mill in East Millinocket, which closed in January and laid off more than 200 workers a few weeks later. Great Northern Paper filed for bankruptcy in September.

Verso Paper has also announced it would close its paper mill in Bucksport on Dec. 1, putting 500 people out of work. The governor told the Portland TV station that there have been serious discussions with potential buyers, but his office hasn’t been brought in.

 

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