Mill seeks $20m from state

NEWTON FALLS — Scott C. Travers sees Newton Falls Fine Paper as the little engine that could.

Mr. Travers, the company's president, is hoping the state will continue to give the train a push up the tracks toward environmental and financial sustainability. He's looking for an assistance package of more than $20 million to help the mill convert from fuel oil to biomass, and use only recycled fiber to make paper.

"We see this as a long-term relationship. It's not a handout. It's going to procure jobs," Mr. Travers said. "The problem we have is the impact of worldwide economies on our operation. We're looking for a way the state can help us."

The mill reopened two years ago after a shutdown of seven years, bringing jobs to 120 people. Scotia Investments, Hantsport, Nova Scotia, was the mill's primary backer, with an investment position of 70 percent. Earlier this year, Scotia bought out the other partners and became full owner, with a total investment in the mill of more than $45 million.

Mr. Travers, who had been the company's vice chairman, took over as president from Dennis R. Bunnell, who became a consultant on sales.

"We've brought dependability to the region," Mr. Travers said. "The average salary is in the mid-40s or 50s."

Converting to wood chips for fuel rather than using fuel oil could reignite forestry, creating a hundred jobs in the woods and in transportation, and about 20 at the mill. Getting away from the volatile price of fuel oil also would allow the mill to consider starting up its second paper machine and adding at least 50 percent more jobs, Mr. Travers said.

He couldn't say whether Scotia Investments will foot the entire bill if the state bows out.

"I can't speak for my board. If we can't put this together, the mill will continue to burn oil and continue to use virgin pulp so we will not have moved our environmental vision forward," Mr. Travers said. "We want to be on the leading edge."

Restarting the mill was expensive, especially with the economic downturn.

"It's working capital that has really consumed much of our resources," Mr. Travers said. "People are using less paper. The industry is down 37 percent. Newton Falls is down a fraction of that. We have focused on coming up with products that other people don't make."

The mill is uses 50 percent recycled fiber.

"We were lucky enough to win being the paper supply for Al Gore's new book, which comes out in November," Mr. Travers said. "He selected our paper because of our environmental attributes. We want to use nothing but recovered fiber in our products."

In addition to paper for publishing, Newton Falls makes a white heavy board used to make boxes and is targeting the commercial digital printing market.

The company also is retooling its production wastewater discharge into a closed-loop system to eliminate its lagoons and their maintenance costs.

Scotia's focus on the future and environmental practices jibes with the community, said Christopher L. Westbrook, president of the Clifton-Fine Economic Development Corp.

"We're trying to make ourselves a sustainable community," he said. "They've invested in a part of New York state that needs a lot of help."

Mr. Travers said he is thankful for what the state has provided so far, including Empire Zone status and startup assistance.

"There's been no frustration being in New York state. We've had great support," Mr. Travers said. "But it's been a tough, tough ride. We're not getting the returns right now."

Officials with Empire State Development and the St. Lawrence County Industrial Development Agency are working with the company, which has met with several politicians seeking advice on how to move forward.

"We're in discussions with them and looking to see what money is available," IDA Executive Director Raymond H. Fountain said. "With the condition of the state right now, that's certainly an uphill climb."