JAY – Pixelle announced yesterday, February 23, that production operations at the Androscoggin Mill in Jay are expected to cease no later than March 9, 2023. Previously, Pixelle had announced a closure date targeting the end of April.
The actual final date will be determined in the near future as the remaining customer orders are finalized and completed. Last fall, when Pixelle announced its intent to discontinue operations at the mill, the company projected that the Jay mill would need to operate well into April to met the needs of customers. In recent weeks, these customers have informed Pixelle that their transitional plans have met their objectives. As such, the company expects to discontinue operations nearly two months earlier than anticipated.
An estimated 230 employees, along with their families and dependents, will be impacted by this closure. Pixelle has announced that separation benefits will be paid out to different groups of employees based on individual release dates.
In addition, the closure of the mill will impact the economy across the entire the town of Jay. In October 2022, the select board made the decision to delay the revaluation from 2023 to 2025. The closure of the Androscoggin Mill means the town will lose two percent of their valuation with a single taxpayer, assessor Paul Binette said during the October 11 meeting. Binette said that delaying the revaluation will allow the town time to apply for Sudden and Severe Valuation Loss, which could help with revenue sharing, a reduced county tax, and increased funding for the school district.
The loss of a major employer may have repercussions for years to come. In the Rangeley region, the 2015 closure of Saddleback Ski Area had a profound impact on the community, impacting multiple aspects of the economic base. For Rangeley, the loss of a recreational employer impacted hospitality venues, restaurants, gift shops and other stores, and other outdoor recreation beyond skiing and snowboarding. In Jay, beyond the immediate impact for 230 employees, the closure of the mill will likely impact the logging industry across Franklin County and the daily economics of two hundred mill employees working and living in the town. If employees are unable to find other jobs in the area, they may migrate out of the region, further impacting an already struggling regional workforce.
The Jay select board is working with several local and state partners to research grant funding and economic development measures in Jay.
In recent years the Androscoggin Mill has faced impediments in operations, with an explosion in 2020 that delayed productions for over a week and covered parts of Jay in debris from the digester. The operations were scaled back following the explosion, with 177 employees laid off in the months afterwards.
Recently, the Town of Jay awarded the Spirit of America Award to the employees of the Androscoggin Mill as a collective, for over 100 years of their volunteerism and community service. In a select board meeting on January 9, select board member Lee Ann Dalessandro nominated the group for the annual award, which recognizes and celebrates community volunteer work. Dalessandro believed that the award should be given to the mill workers for all of their contributions to the town over the years.
“There are a lot of things that the people have contributed to this town,” Dalessandro said during her nomination. “This is going to be the last year of a mill worker being in this town.”
The Maine Department of Labor Rapid Response Team is collaborating with Spruce Mountain Adult Education to host a training resource fair on Monday, February 27 from 3 to 7 p.m. at the Spruce Mountain Adult Education Center in Livermore Falls. This fair is open to Pixelle employees and to the general public, and will cover subjects such as skills training, business start-ups, planning for healthcare and retirement, continuing education, and more.
