The fate of the former Androscoggin Mill in Jay is uncertain once again, as the new owner contends with the impact of tariffs.
Godfrey Forest Products has started demolition on the site to build a new facility to manufacture oriented strand board — a material similar to plywood, owner John Godfrey said.
But he said the facility will require equipment from Europe and electrical components from China — and even domestic machinery is affected by the rising costs from tariffs on steel. And the tariffs could reduce demand for construction materials domestically.
“So the tariffs represent a double whammy of raising the cost of building the factory and perhaps diminishing the market’s desire for our product,” Godfrey said.
The original cost estimate for the project was just under $600 million, but Godfrey said there is now no way to project an accurate cost assessment.
“I guess in a worst case, we would just consider that, with all of these factors, what looked like a great project in the fall of 2024 might not make sense at all, but we’re certainly hoping that is not the outcome,” he said.
Godfrey said while demolition will continue, construction will not start until there is more clarity around the economics.
This article appears through a media partnership with Maine Public.
