<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF BADGER PAPER MILLS, INC. AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                           2,684
<SECURITIES>                                     1,318
<RECEIVABLES>                                    5,120
<ALLOWANCES>                                         0
<INVENTORY>                                      6,837
<CURRENT-ASSETS>                                16,936
<PP&E>                                          66,327
<DEPRECIATION>                                  37,042
<TOTAL-ASSETS>                                  48,356
<CURRENT-LIABILITIES>                            8,744
<BONDS>                                         20,394
<PREFERRED-MANDATORY>                            2,700
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                         190
<TOTAL-LIABILITY-AND-EQUITY>                    48,356
<SALES>                                         70,427
<TOTAL-REVENUES>                                70,427
<CGS>                                           67,600
<TOTAL-COSTS>                                   71,685
<OTHER-EXPENSES>                                 1,633<F1>
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               1,354
<INCOME-PRETAX>                                (3,593)
<INCOME-TAX>                                   (1,153)
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (2,442)
<EPS-PRIMARY>                                   (1.25)
<EPS-DILUTED>                                        0
<FN>
<F1>Restructuring provision, Pulp Mill closure charge.
</FN>