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Pixelle Specialty Solutions LLC has submitted and updated federal WARN notices indicating it will cease production at its paper mill in Chillicothe, Ohio, by Aug. 10.
Grove, Pennsylvania-based Pixelle announced in 2022 its intentions to invest $21 million to upgrade and restart a paper machine at the mill so it could produce up to 75,000 tons per year of products for customers in the food packaging, commercial inkjet and other specialty paper segments.
At that time, a spokesperson for Pixelle told Recycling Today the paper machine line tends to include 30 percent postconsumer recovered fiber, with the ability to run at even higher recycled content percentages.
Pixelle, has been owned by Miami-based investment firm H.I.G. Capital since 2022.
The company's initial WARN notices were announced in April and it since “has worked diligently with government and community partners to explore every viable path forward.”
In its June announcement, Pixelle notes a possible redevelopment of the land on which the mill sits as well as a scenario involving a buyer who would keep the plant operating.
The company says it will continue working with federal, state, and local officials regarding the future of the site and will offer support for impacted employees.
“The exploration of redevelopment options reflects the shared commitment of Pixelle, [economic development agency] JobsOhio and public sector leaders to ensure a thoughtful transition for the Chillicothe and Ross County [Ohio] communities and the dedicated workforce that has supported this facility for decades," Pixelle says.
The company says it is exploring all viable sale opportunities for the plant but is preparing for decommissioning to proceed absent a sale to a qualified buyer.
In the absence of such an option, Pixelle plans to transfer the Chillicothe paper mill property to an entity designated by JobsOhio (or another government body) for nominal consideration to support long-term redevelopment of the site if no sale occurs.
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