Executive Director’s Message
As the days grow colder and we approach the end of the year, it is a fitting time to reflect on the progress we’ve made over the nearly six months since our staff transition. The coming year will undoubtedly bring its share of challenges, but we are prepared to face them and remain committed to representing the interests of the forest products industry.
In late September, we held our annual meeting and were pleased to recognize a host of outstanding contributors to our industry. Among the many deserving award recipients was Sappi, which received our 2025 Manufacturer of the Year award in recognition of the continued and significant investments in the Somerset facility. The completion of the $500 million PM2 rebuild sent a strong signal that the largest wood consuming facility in the Northeast is here to stay.
Unfortunately, the certainty provided by this substantial investment has since been clouded with the announcement that four dams on the lower Kennebec River owned by Brookfield are to be sold to The Nature Conservancy (TNC) as part of a river restoration plan. To their credit, TNC has consistently indicated its plan to work collaboratively over the coming years with Sappi and industry stakeholders to implement a plan that achieves their goals without harming Sappi’s operations. The Council appreciates TNC’s direct engagement since the announcement and will work diligently to hold them to the standard that this challenge requires.
While nothing will change overnight and this project will take upwards of a decade to carry out, our immediate concern is with the impact that the unknown will on investment decisions, not just at Sappi, but throughout the entire supply chain. As our newly released “2024 Statewide Economic Contribution of Maine’s Forest Products Sector” report highlights, our industry has seen at least $1.5 billion in investment over the last few years to modernize and make operations more efficient. These investments are critical to the future of our industry, and from the stump to the mill, they must continue. Uncertainty at the scale this project creates could have profound impacts on investments at all levels. The Council will remain highly engaged as this project develops to support Sappi and make sure that our collective voices are heard.
In other manufacturing news, Woodland Pulp in Baileyville has temporarily laid off workers due to decreased product demand. We anticipate this slowdown will be temporary, but it underscores the importance of continued innovation and the creation of new markets within Maine’s forest products sector.
On a positive note, TimberHP has launched its long anticipated third product line, advancing wood-based construction and insulation. We are excited to see how this development strengthens sustainable building practices.
Additionally, we have been working diligently to make a cross-laminated timber manufacturing bond a reality for Maine. This initiative could position Maine as a regional leader in manufacturing for this innovative building material. The bond has been carried over in the Appropriations Committee. It will remain high on our list of priorities when the legislature comes back in January, and we again would like to thank Rep. Sam Zager, our 2025 Legislator of the Year, for his leadership on this bill.
As detailed on page 6, we have also addressed several regulatory matters, including water quality assessments, extended producer responsibility rules for packaging, and the Land Use Planning Commission’s Comprehensive Land Use Plan (CLUP). This fall, we issued our Economic Report, highlighting the capital investments and innovations shaping our industry in a joint release with the Department of Economic and Community Development. This report, which is included later in this newsletter, serves as a powerful reminder that Maine’s forest products industry remains a cornerstone of the state’s economy.
Thank you for your continued support and engagement, and thanks to all of our members who opened their doors to host tours over the last few months. Together, we will navigate the challenges ahead and seize the opportunities that strengthen our industry and our communities.
Best,
Krysta West
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