Governor Hochul announces Twin Rivers Paper Company acquisition that secures future of Potsdam Specialty Paper mill

New York – A paper mill in northern New York that once faced an uncertain future is now at the center of a major economic lifeline after state officials confirmed a deal that will preserve jobs, stabilize operations and inject new momentum into the region’s manufacturing sector.

Governor Kathy Hochul announced that Twin Rivers Paper Company has officially acquired Potsdam Specialty Paper Inc., commonly known as PSPI, in a move expected to secure the future of the Potsdam paper mill and protect dozens of manufacturing positions in the North Country.

The acquisition is being viewed as a critical intervention for a facility that had reportedly been at risk of closure. Officials said the agreement will preserve 70 jobs while also allowing for upgrades that could position the mill for long-term growth in highly specialized paper markets.

State leaders described the announcement as an example of targeted economic investment designed to keep industrial employers operating in Upstate communities where manufacturing still serves as a major economic backbone.

“Keeping good paying jobs in the North Country and strengthening our manufacturing base is exactly the type of win we should be fighting for,” Governor Hochul said. “This investment helps secure the future of the Potsdam mill and provides a strategic growth opportunity for Twin Rivers Paper Company, which has operated three paper mills in New York since 2016. It will support the growth of additional jobs and shows that Upstate New York is open for business.”

The paper industry has long played a defining role across parts of northern New York. For generations, mills provided stable employment and helped support surrounding small businesses, schools and local governments. But in recent decades, the industry has faced repeated economic pressures tied to globalization, automation, shifting consumer habits and rising operational costs.

That changing landscape has left many communities vulnerable whenever a major industrial employer faces uncertainty. In Potsdam, concerns surrounding the mill’s future raised fears about the possible economic ripple effects that could follow a closure.

Instead, the acquisition signals a very different direction.

Twin Rivers Paper Company, headquartered in Madawaska, Maine, already operates several facilities across northern Maine and New York. The company specializes in the production of coated and uncoated specialty papers used in publishing, packaging, labeling and technical applications.

The addition of the Potsdam operation strengthens Twin Rivers’ manufacturing footprint considerably. The facility contributes another 26,000 tons of annual production capacity while bringing highly specialized production capabilities into the company’s broader portfolio.

Industry officials say those capabilities are especially valuable because the Potsdam mill produces engineered paper products designed for niche and industrial uses rather than standard commodity paper.

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The facility’s equipment allows for latex saturating, synthetic and nonwoven fiber handling, wet creping and advanced coating operations. It also features extensive color production capabilities that support a broad customer base.

Products manufactured there are used in everything from tape backings and abrasive materials to durable labels, sterilization papers for medical applications, wallpaper substrates, digital printing materials and premium retail packaging.

For Twin Rivers, executives said the acquisition represents more than additional production space. It also expands technical expertise and product diversity.

Twin Rivers Paper Company CEO Tyler Rajeski said the partnership aligns closely with the company’s long-term strategy.

“This strategic acquisition adds exciting new papermaking capabilities to Twin Rivers’ portfolio. We greatly appreciate the engagement and support from New York State. Their unwavering commitment to the Potsdam mill’s future has been instrumental in our ability to preserve good manufacturing jobs in Potsdam for hard-working New Yorkers. PSPI’s strong focus on product development and customer collaboration aligns closely with Twin Rivers’ core competencies and builds upon our commitment to innovation, operational excellence, and customer-focused growth. We’re excited to welcome Mike Huth and the dedicated Potsdam team to Twin Rivers, and we look forward to being a part of the Potsdam community.”

New York State played a major role in helping finalize the deal.

To facilitate the acquisition, the state awarded a $1.82 million Regional Council Capital Fund grant and offered up to $180,000 in performance-based Excelsior Jobs Program tax credits tied to employment commitments.

Officials said the financial support will help fund essential maintenance work and address deferred capital projects that are necessary to modernize and stabilize operations at the facility.

The funding package also served another important purpose — reassuring Twin Rivers that the state was committed to supporting long-term manufacturing in Potsdam.

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Additional support may soon follow through the New York Power Authority. Its Board of Trustees is expected to consider funding assistance for the company through the Northern New York Power Proceeds program during an upcoming meeting.

That program distributes net earnings generated from unused hydropower associated with the St. Lawrence-FDR Power Project, channeling those resources into regional economic development efforts.

The acquisition has drawn praise from economic development leaders across the state, many of whom see advanced manufacturing as essential to the North Country’s future.

Hope Knight said retaining industrial jobs remains a central priority for the state’s economic strategy.

“Preserving jobs and strengthening the North Country’s industrial base are top priorities for Empire State Development. Our partnership with Twin Rivers ensures the Potsdam mill will continue to thrive, maintain 70 jobs for hard-working New Yorkers, and foster the continued growth of innovative, high-performance manufacturing right here in the Empire State.”

Regional leaders also emphasized the symbolic importance of preserving a manufacturing facility with deep historical roots in St. Lawrence County.

For decades, paper production has been woven into the identity of many North Country communities. Even as industries changed and some factories disappeared, manufacturing remained a key source of middle-class employment in the region.

North Country Regional Economic Development Council co-chairs Dr. Kathryn Morris and James McKenna described the agreement as an important step toward protecting that legacy.

“The North Country’s manufacturing heritage is a cornerstone of our regional economy, and today’s announcement ensures that legacy continues in Potsdam. Integrating Potsdam Specialty Paper’s unique technical capabilities into the Twin Rivers portfolio protects 70 good-paying jobs and strengthens a facility that has long been a vital employer in St. Lawrence County. The Regional Council is committed to fostering an environment where innovative manufacturers can thrive, and we look forward to seeing this facility reach new heights under Twin Rivers’ leadership.”

Local government officials echoed those sentiments, noting the broader community impact tied to the facility’s future.

David Forsythe said the acquisition represents a major economic victory for the region.

“This is outstanding news for our community and the North Country workforce. Twin Rivers investment of Potsdam Specialty Paper Inc, not only protects good-paying jobs but also ensures the long-term stability of one of our region’s key manufacturing assets. The acquisition positions Twin Rivers to expand specialty paper production and reinforces the company’s commitment to sustainable operations in Northern New York. I as well as other Legislators commend the development as a major win for economic stability and regional growth.”

Meanwhile, leaders directly connected to the mill say workers are optimistic about the transition and future opportunities.

PSPI CEO Mike Huth said employees are eager to join Twin Rivers and continue building on the company’s long-standing reputation for specialty paper production.

“The Potsdam team is energized by the opportunity to join the Twin Rivers Paper team. Twin Rivers boasts a solid portfolio of papermaking assets, which will be complemented by our strengths in Potsdam. We’re excited about the ability to build upon our mutual legacy of papermaking excellence, enhance the value we bring to existing Potsdam customers with the expertise and resources of Twin Rivers Paper, and serve new customers.”

The transition also received support from local development agencies that have worked with the facility over the years.

Patrick J. Kelly said collaboration among state agencies and regional partners was essential in securing the agreement.

“As a longtime partner of Potsdam Specialty Paper, we’re thrilled to welcome Twin Rivers to St. Lawrence County. The mill’s production capabilities align well with an innovative and growing company like Twin Rivers, and we look forward to supporting them as they build on the strong potential of their operations here. We’re also very appreciative of the strong support from Empire State Development and the New York Power Authority, which is helping ensure a smooth transition, new opportunities for local workers, and continued high quality production in Potsdam.”

Twin Rivers itself brings a long industrial history into the partnership.

The company traces more than a century of papermaking operations and currently produces roughly half a million tons of paper annually. Along with facilities in Maine and New York, it also operates a pulp mill in New Brunswick.

Company leaders say their business model focuses heavily on specialty products, customized development and long-term customer relationships — areas where the Potsdam operation already has strong expertise.

The company is backed by U.S.-based ownership groups Atlas Holdings and Blue Wolf Capital, giving it financial support for continued investment in production assets and facility modernization.

For New York officials, the acquisition serves as another example of how public investment can help preserve strategic industries while preventing the economic damage associated with plant closures.

For workers in Potsdam, though, the news feels much more personal.

Instead of layoffs and uncertainty, the mill now faces reinvestment, modernization and the possibility of future expansion. In a region where manufacturing jobs remain deeply important, that outcome carries enormous weight.

And in the North Country, where industrial stability can shape the future of entire communities, the reopening of opportunity at the Potsdam mill may prove just as significant as the paper products rolling off its machines.