May 18—The state has approved Hawesville's Domtar Paper Co. LLC for tax incentives that will help the company in a multi-million dollar investment.

On Wednesday, Gov. Andy Beshear's office announced that the company would be receiving $1.2 million in tax incentives from the Kentucky Economic Development Finance Authority (KEDFA).

That agreement is for Domtar's $51 million investment at its 50-year-old Hawesville plant and a 90% job retention rate.

Domtar's investment will be upgrading the current pulper with a modern pulper to gain additional machine capabilities and better service growing markets. Officials at Domtar plan to have the expansion fully operational by the end of 2025.

" ...It promotes stable employment and maintains the Hawesville mill's standing as a pillar of the community that it has served for over 50 years," said Hawesville mill manager Murray Hewitt in a statement.

Mike Baker, Hancock County Industrial Foundation director, said he was aware that Domtar had received the preliminary approval for incentives.

"Anytime we see capital reinvested in our existing plants, that's aways a really great sign, and it's a great testimony to the local industry, management and employees," he said. "Being a manufacturing county like we are, it's always a good barometer of how healthy our industries are."

Founded in 1848, Domtar is a leading provider of a wide variety of fiber-based products, including communication, specialty and packaging papers, market pulp and airlaid nonwovens. The company has approximately 6,400 employees serving more than 50 countries around the world.

The company is headquartered in Fort Mill, South Carolina. Domtar's Hawesville mill, which employs approximately 400 people, is an integrated pulp and paper mill that produces nearly 600,000 tons of fine specialty paper annually.

Additionally, KEDFA approved Domtar for up to $100,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.

Hancock County Judge-Executive Johnny W. Roberts Jr. complimented Domtar's investment.

"We are very thankful for Domtar's continued commitment to Hancock County," said Roberts in a statement. "They have been a vital member of our community for many years. This announcement also confirms their confidence in our local workforce and will strengthen our industrial base for future generations."