New York Times subsidiary Northern SC Paper and paper maker UPM are ending their Madison Paper Industries partnership and shutting the mill.
Production is like to stop by the end of May, with two related hydro power plants to be sold.
The mill in Maine - the northeasternmost state in the US - produced about 195,000 tons of supercalendered paper on one machine.
About 214 employees located at the mill site are affected, with some to remain beyond May to maintain buildings and operate the hydro generating facilities.
UPM Paper ENA senior vice president Ruud van den Berg says demand for SC papers declined significantly in 2015: "The Madison mill is not cost-competitive and has lost a significant amount of sales in the recent past," he says.
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