The Nashua Card and Glazed Paper Company was in operation here for about ten years before it was sold. Elsewhere, in 1898 another competitor, Carter Rice and Co. of Boston bought out a gummed paper manufacturer in Rockport, Massachusetts and moved their business to South Boston. But six years later on February 22, 1904, when that plant burned to the ground, the company needed to acquire a new manufacturing facility. The company purchased the heavily-in-debt Nashua Card and Glazed Paper firm and the Franklin Street factory for $74,000 plus mortgage. They had moved their equipment and inventory to Nashua by the end of May.
Thus, in 1904 the Nashua Gummed & Coated Paper Company was formed to take over the coating business of the Nashua Card and Glazed Paper Company. By this time, cardboard production had for the most part moved west and the manufacture of flint glazed papers had become unprofitable. The newly organized company put its emphasis on the production of friction glazed papers and the manufacture of gummed papers including sealing tape. In its first year of operation the Nashua Gummed & Coated Paper Company had 70 employees and sales of $234,000. In 1907 a new and important product, waxed paper, was added to the company line. Its major use at the time was to wrap loaves of bread.
A new boiler plant with two 200 H.P. was constructed in 1908 across the railroad tracks from the main mill and was expanded by two more boilers two years later. In 1910 the original building was expanded by the addition of a fourth story. The addition was designed by the office of prominent mill engineer Charles T. Main of Boston. The same year internal improvements occurred as well. A plant telephone was added and new office machinery was installed. The company also hired its first chemist, laying the foundation for modern research and development. The former W.D. Brackett Shoe Factory on East Hollis Street was leased to accommodate the waxed paper division.