Why a massive paper mill closing across the border in North Carolina is a 'regional crisis'

The impending closure of a mill that has served as the economic and civic center of Canton, North Carolina, for more than a century will have consequences far beyond town borders, the mayor has said.

Mayor Zeb Smathers, in a March 7 interview with the USA TODAY Network, said after learning of the planned summer shutdown of the paper mill, he contacted North Carolina Gov. Roy Cooper and Rep. Chuck Edwards to ask for assistance. The mill is just across the border from Tennessee.

The closure will directly affect roughly 1,100 workers in Canton. Thee additional 200-300 employees of a satellite facility in Waynesville do not appear to be affected. Corporate officials shared the decision late March 6 with local managers, with word spreading quickly.

Smathers said the town was in a period of extreme mourning right now with workers trying to process the end to their jobs at which some have worked several decades.

"Our job is to love and to heal at this point, but then to quickly pivot to provide every single opportunity and resource for these men and women to find employment somewhere, whether that be in Haywood County or the region," he said.

The town and surrounding communities, including Cruso, still bear the scars of a devastating 2021 flood that cost lives, homes and businesses.

Smathers noted that 40% of the plant workforce actually comes from the east in Buncombe County, home to Asheville. As a university and law student in the Piedmont, Smathers said he saw the effects of the collapse of that region's textile and furniture industries and noted they had ripple effects, as the mill closure would likely have.

"This is a regional crisis. This is a state crisis," he said.

Cooper in a March 7 tweet, called the closure "a shocking, cruel blow to families who have depended for years on wages and business from Canton Mills."

"I talked with Mayor Smathers and my administration is all in to help find solutions and create new opportunities for Western NC," the governor said.

Edwards, who was born in Haywood County and spent part of his life in Canton, said the mill has always been the town's "lifeblood."

“As someone who was born and raised there, I understand more than most that the mill is more than just a workplace – it’s a way of life. My staff and I have already engaged with state and local governments and organizations, as well as other businesses in our entire region, to help bring economic stability and opportunity to the families in Haywood County who are affected by this loss," he said.

The Illinois-based Pactiv Evergreen said the closure was part of "strategic actions to restructure its Beverage Merchandising segment and reorganize the company’s management structure," according to spokesperson Beth Kelly.

Along with the Canton mill, Pactiv plans to shutter at the same time a plant in Olmsted Falls, Ohio. Kelly said the company would "continue to explore strategic alternatives" for the Waynesville facility and another in Pine Bluff, Arkansas.

"We expect these strategic actions to position us to remain competitive in the liquid packaging market and gain additional synergies from the further integration of our businesses. These actions are consistent with our stated strategy of focusing on our core competency in converting to enhance and accelerate our position as the market-leading North American Food & Beverage packaging company," she said.

Kelly said the company, which sells food packaging and food service across North America to supermarkets, restaurants and other buyers, made the changes "with considerable thought for our employees, customers, shareholders and communities, and do not take these decisions lightly."

"The company recognizes the impact this will have on our colleagues and is committed to supporting impacted employees throughout this transition. We will provide severance benefits and offer outplacement services and other support to help impacted employees pursue new opportunities.”

But residents who have connections to the mill reacted strongly to the news, many blaming Pactiv for upending their community and lives.

"Haywood County will never be the same ever again," said Traci Hoglen, whose husband, Jerry Hoglen, has worked in the plant 44 years and was two years from retirement.

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Hoglen said she was "disgusted and angry," and noted that her husband's son, brothers, nephews and cousins also work at the mill.

Joel Burgess has lived in WNC for more than 20 years, covering politics, government and other news. He's written award-winning stories on topics ranging from gerrymandering to police use of force.

This article originally appeared on Asheville Citizen Times: Canton paper mill closing is a 'regional crisis,' mayor says