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US: Maine paper union sues to block sale of closed mill

By  |  January 12, 2015

Following Verso Paper Corp.’s acquisition of Newpage, the Maine chapter of the International Association of Machinists and Aerospace Workers (IAMAW) filed a lawsuit attempting to block the sale of a local paper mill.Verso closed the mill last month and has already started the process of selling it to AIM Development.

The antitrust suit claims that Verso conspired to control the coated printing industry and part of that plan was to sell the paper mill to a company which will not continue using the mill for paper. The allegations state that Verso deliberately sold the mill before the merger with Newpage in order to be eligible for the merger.

In the settlement to acquire Newpage, Verso had to agree to sell one of Newpage’s paper mills to a Canadian paper company since they would control over 50 percent of the coated paper market with the accumulated mills. The IAMAW wants Verso to sell the mill in Maine to a buyer who would continue the paper production.

The case is scheduled for Bangor, Maine, federal court Tuesday.

Full Content: Times Union

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