• Rumford Branch, RUPO / PORU

  • Guilford Rail System changed its name to Pan Am Railways in 2006. Discussion relating to the current operations of the Boston & Maine, the Maine Central, and the Springfield Terminal railroads (as well as the Delaware & Hudson while it was under Guilford control until 1988). Official site can be found here: PANAMRAILWAYS.COM.
Guilford Rail System changed its name to Pan Am Railways in 2006. Discussion relating to the current operations of the Boston & Maine, the Maine Central, and the Springfield Terminal railroads (as well as the Delaware & Hudson while it was under Guilford control until 1988). Official site can be found here: PANAMRAILWAYS.COM.

Moderator: MEC407

  by ProRail
 
newpylong wrote: Tue Sep 20, 2022 8:37 pm Could ND run a pulp shuttle from Rumford or do they already have excess paper capacity there?
For a while in 2020 RUPO was running with a head end block of pulp to be set off at the Pixelle mill in Jay. But then Pixelle started buying pulp from Saint John and also shipping from other sources. They were buying pulp on the spot market so Transportation costs varied. Rumford to Jay was the lowest transportation cost. But that doesn't mean that ND Paper sold them pulp at a discount.
  by NYC27
 
CN9634 wrote: Wed Sep 21, 2022 9:02 pm The real questions are would Pixelle be willing to sell it and for how much…
Early intel says that Pixelle doesn't want to sell to another paper company. If someone would have to put a good number on the table and commit to making grades that don't compete with their offerings to get them off that stance. There are other industrial users interested. It is going to be interesting to see how this one plays out.
  by newpylong
 
Why would they care what someone in Maine does with the plant if they're out of there? If another paper company wants to compete with Pixelle they could just as easily do so with their other properties one would think?

These companies keep grandstanding about how they are supportive of the community but when push comes to shove they will bury the place to save a dime.
  by S1f3432
 
It's been pretty common practice over time for companies to buy competitors and then close
those facilities. It removes both competition and capacity which ends up bolstering prices, at
the same time acquiring the intellectual property, product line. and branding of the former
competitor. IP and Kimberly-Clark (think Scott Paper at Winslow) both did quite a bit of this
in the 80's and 90's. Pixelle doesn't want to sell the mill to another company producing the
same product which means the buyer would need to produce something different, so there
is the prospect of more expense involved in making some sort of conversion of the plant.
  by CPF66
 
newpylong wrote:H.I.G. owns my company too, that stinks.

Chances of someone else like ND scooping it up?
I doubt it. ND is primarily focused on the production of pulp for the mills they own overseas. Why add another paper mill with no pulp production that is going to eat into your exports?
  by Cosakita18
 
NYC27 wrote: Thu Sep 22, 2022 1:43 pm
Early intel says that Pixelle doesn't want to sell to another paper company. If someone would have to put a good number on the table and commit to making grades that don't compete with their offerings to get them off that stance. There are other industrial users interested. It is going to be interesting to see how this one plays out.
I just hope "other industrial users" doesn't mean a server farm or marijuana processing...That seems to be the trend for some other legacy industrial sites in the state.
  by MEC407
 
Those two uses would be unfortunate for the railroad but probably better for the people of Jay in terms of long term stability for workers and the town's tax base.

Other than papermaking or something involving forest products or biofuels, it's hard to think of any other uses that would make sense in that location and require freight rail service.
  by MEC407
 
Yep, more vaporware from the forest fuels people.
  by johnpbarlow
 
This decision to close this plant may also have been aided by the US’ looming economic situation. A rail served paper mill in Port Huron MI, Dunn Paper, is closing its plant in November. And layoff notices around the country are picking up steam across industries.
  • 1
  • 22
  • 23
  • 24
  • 25
  • 26