Cooper urges Evergreen to keep Canton paper mill open, looks to recover $12M in incentives

CANTON - Gov. Roy Cooper on March 16 urged the operators of a paper mill in Canton set to shutter to find a way to keep it running, saying a closure would have a "devastating effect" on the region and its people.

Pactiv Evergreen announced last week that it expected to close its Canton mill during the second quarter as part of a restructuring of its beverage merchandizing operations. About 1,100 employees are expected to lose their jobs.

In a letter, Cooper asked Pactiv Evergreen USA CEO Mike King to "explore all options" to keep the mill operating, whether through a sale, repurposing of the plant, or through any other means.

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The mill "has been in operation for more than a century and has been the lifeblood of that town and region," Cooper wrote. "Our priority remains to support the people affected by this unexpected closure by providing any available resources to their relief and recovery."

The company said in its March 6 announcement that about 1,300 positions would be eliminated with the closing of the Canton mill and a converting facility in Olmsted Falls, Ohio.

Cooper also put the company on notice that the state would seek to recover $12 million in state-funded incentives received to keep the mill operating if it closed.

A Job Maintenance and Capital Development grant agreement announced in late 2014 between the state and two subsidiaries required the company to retain at least 800 full-time workers through the end of 2024, according to Cooper.

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"If you follow through your announced plans, we will demand full repayment of those funds," Cooper wrote.

Attorney General Josh Stein on March 16 sent a separate letter to King that went further, demanding his company repay the grant funds immediately based on "the company's clear intent to breach" the agreement. Stein also reminded King of Pactiv Evergreen's responsibilities to address any outstanding environmental issues at the mill site.

“The people of Canton and its surrounding communities have been dealt a devastating blow,” Stein said in an accompanying statement. “I share their fears for what this may mean for the health and wellbeing of the community and the economy of western North Carolina, and I’m going to do everything in my power to ensure that Pactiv satisfies its legal obligations to its employees and our state. Nothing less is acceptable.”

Local officials have pledged resources to the workers who are expected to be laid off. Cooper's state government budget proposal released March 15 recommended $5 million be set aside to support employee and community needs in Canton. The budget document said any incentives clawed back from the two subsidiaries would be used to help Canton.

This article originally appeared on Asheville Citizen Times: Gov. Cooper urges Pactiv Evergreen to keep Canton paper mill open