Nah they don't, he was BS'n you. They make LWC, which is coated newsprint. For stuff like Parade magazine. All currency paper for the US mint is made by Crane Paper in Mass. Been there too!, that's a wierd place. Its not made from wood, it's made from cotton linen.
Mainers are funny, pretty dang smart most of them but very country. And they talk funny. "Yah cahhnt pahhk yah cahhh theyahh yahh bastahd!!" And they say "Wikkid" all the time. If something is difficult, they call it "wikkid hahhd"