Case Studies of Broad, Flexible, and Relationship-based Approaches
Seaman Paper Company
GARDNER
ORANGE
OTTER RIVER
Seaman Paper Company is a family owned paper manufacturer with multiple facilities located in Gardner, Orange and Otter River. The Company manufactures lightweight tissue paper and competes with other manufacturers worldwide. Seaman is a major employer in the region, with up to 700 employees on its payroll.
In order to continue to compete successfully in a worldwide economy, Seaman’s owners, George and James Jones, have been aggressive in managing their costs. One of the Company’s largest expenses is energy. Seaman, over the years, has worked to become more efficient in their use of energy, but the cost of oil, used to produce steam that runs the mill equipment, threatened the Company’s financial viability.
In 2005, Seaman was able to install its first wood fired burner, financed by The Life Initiative’s sister company, Massachusetts Capital Resource Company. This investment helped reduce energy costs by 60%. However, as the cost of oil continued to rise dramatically, the Company began to seek financing for a second wood fired burner, which would substantially end their reliance on oil.
TLI staff met with Seaman, visited the mill and other facilities, reviewed financials and determined that providing financing for Seaman conformed to the overall goals of TLI. Within two months, TLI was able to commit to a loan to finance the second boiler. TLI worked with the company on loan terms that would allow it to realize savings from the installation of the furnace before full repayment of the loan. This flexibility around loan terms was an important factor to Seaman Paper. The quickness of response allowed the boiler to be installed in late fall 2008.
TLI’s investment in Seaman Paper enables a Massachusetts-based manufacturer to lower its costs and continue to be a major regional employer. In addition, our investment allows Seaman to continue to be an important example of a company using a green technology, in this case a renewable energy source, to successfully compete in a worldwide market.