The $111 million investment is part of a larger investment between the company's two new paper mills across the country.
The mill in Maine will receive a shoe press for one of its machines which is expected to increase paper production by 20 percent.
The company also will be investing in a new recycled pulp facility that will increase the maximum amount of paper made by 1,200 metric tons.
People around town say it is good to see some change happening because some say Rumford is in poor shape.
"They need the money, more than anything, because they need to change this place around. It's a ghost town down here. All these storefronts that they have down here that aren't being worked on. It's like a ghost town," Rumford resident Kenny Tillberg said.
Gov. Paul LePage said he is pleased about the changes that will make the Rumford mill more competitive.