Gov. Roy Cooper on Thursday urged operators of a major paper mill in western North Carolina to find a way to keep it running, saying a closure would have “devastating effects” on the region and its people.
Pactiv Evergreen announced last week that it will close its Canton factory in the second quarter as part of a reorganization of its beverage merchandising business. Around 1,100 employees are expected to lose their jobs.
In a letter, Cooper urged Mike King, CEO of Pactiv Evergreen USA, to “assess all options” to keep the mill operating, whether through a sale, repurposing of the facility, or otherwise.
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The mill “has been in operation for more than a century and has been the lifeblood of this town and region,” Cooper wrote. “Our priority remains supporting those affected by this unexpected closure by providing all available resources for their assistance and recovery.”
Democratic North Carolina Gov. Roy Cooper on Thursday pushed against the closure of a paper mill in Canton that employs over 1,100 people (Allison Joyce/Getty Images)
The company said in its March 6 announcement that it would eliminate about 1,300 jobs with the closure of its Canton plant and a processing facility in Olmsted Falls, Ohio.
Cooper also told the company that the state would seek to reclaim $12 million in state-funded incentives it received to keep the plant operating in the event of a closure.
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A job preservation and capital development grant agreement announced in late 2014 between the state and two subsidiaries committed the company to maintaining at least 800 full-time employees by the end of 2024, according to Cooper.
“If you go ahead with your announced plans, we will seek full repayment of these funds,” Cooper wrote.
Attorney General Josh Stein on Thursday sent a separate letter to King that went further, urging his company to immediately return the grant funds based on “the company’s clear intent to breach the agreement.” Stein also reminded King of Pactiv Evergreen’s responsibility to address all outstanding environmental issues on the facility’s premises.
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Local officials have pledged resources to workers who are expected to be laid off. Cooper’s state government budget proposal, released Wednesday, recommended providing $5 million to support the needs of Canton employees and the community. The budget document said any incentives reclaimed from the two subsidiaries would be used to help Canton.
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