GO Lab secures $2.4 million to proceed with Madison mill conversion

Sep 11, 2019
Belfast —

GO Lab Inc., which closed last month on its purchase of the shuttered Madison Paper Industries mill in Madison, has received $2.4 million in financing from a consortium of lenders to help with retrofitting the plant and purchasing and transporting the necessary production equipment from Germany.

According to a news release issued Tuesday, the funding includes a $1.2 million loan underwritten by the Finance Authority of Maine, with FAME as lead lender at $500,000. Other partners are Coastal Enterprises Inc., $250,000, and Maine Technology Institute, $200,000. Eastern Maine Development Corp. has approved a $250,000 loan, and Somerset Economic Development Corp. has authorized a loan of $300,000.

In addition, the Maine Rural Development Authority has approved $500,000 in financing, and the town of Madison has authorized a $400,000 loan, most of which will come from a Community Development Block Grant through the Maine Department of Economic and Community Development and will be used for engineering costs.

The total loan proceeds of $2.4 million are part of a $60 million-plus overall project.

GO Lab has announced plans to manufacture three wood-fiber insulation products at the 600,000-square-foot mill, which has been closed since 2016 and later was listed for sale at $2.5 million. The company says the new products, to be marketed under the name Timber Pure Technologies, will be more environmentally friendly, better performing and potentially less expensive than traditional types of insulation.

GO Lab expects to begin production in the second half of 2020, becoming the first U.S. producer of wood-fiber insulation.

"GO Lab’s innovative product line is a perfect fit for Somerset county in terms of available and capable workforce and the readily available raw material needed for production,” SEDC Executive Director Christian Savage said in the news release.

GO Lab's president, Dr. Joshua Henry, expressed the company's gratitude for the support of state and local financing partners. "GO Lab Inc. plans to revitalize the Madison mill and provide over 100 good-paying jobs," he said, "which will help stimulate the local economy, the forest practices industry, and the state of Maine as a whole.”

 

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