The mill’s closing would have put more than 200 people out of work.
Baldacci spokesman David Farmer says the governor spoke to company officials earlier Wednesday, and the told him they have decided not to close the mill. How long it stays open, they said, depends on cash flow and customer orders.
Fraser Paper operates Katahdin’s mills in Millinocket and East Millinocket. Katahdin said in May that it planned to close the Millinocket mill because of record high oil prices. They plan on intensifying efforts to produce energy for the mill that’s less reliant on oil.