Recycled Paper Mill to Open in Virginia

Virginia Gov. Bob McDonnell has announced that Tak Investments Inc., based in Gaithersburg, Md., will invest $60 million to build a recycled tissue plant in Isle of Wight County, Va. The company’s subsidiary, ST Tissue, will recycle recovered fiber into tissue for napkins and towels using part of International Paper's Franklin mill.

McDonnell says, "Isle of Wight County is on a positive economic upswing, as this project brings the total jobs the region has gained since 2011 to more than 1,000. Not only will Tak Investments bring significant investment and 85 new jobs to the region, the company will repurpose and put into use a vacant portion of the International Paper mill. It is a perfect fit, as ST Tissue has the opportunity to modify certain paper-making machinery already in the plant to produce its tissue products. The available infrastructure and high-quality machinery, trained workforce and nearby abundant supply of natural resources put Virginia, and Isle of Wight County, ahead of the competition."

"The new ST Tissue operation in Isle of Wight County will allow the company to access an expansive supply chain and take advantage of Virginia's transportation infrastructure and strategic Mid-Atlantic location," says Jim Cheng, Virginia Secretary of Commerce and Trade. "This project is a win-win for all involved, as ST Tissue will benefit from the mill's current assets as well as the region's available workforce, and Isle of Wight County and Franklin will gain a new corporate partner and 85 job opportunities."

"We enjoy the challenge of helping rebuild communities that we do business in," says Sharad Tak, president and CEO of Tak Investments Inc. "A few years ago we acquired a struggling tissue mill in Oconto Falls, Wis., and, with help from the workforce and the surrounding community, we were able to transform the facility into a successful business. We envision the same sort of success here in Franklin, Va., because the community has been incredibly supportive of our project and the talent base here is also exceptional."

The Virginia Economic Development Partnership worked with Isle of Wight County to secure the project for Virginia. McDonnell approved a $200,000 grant from the Governor's Opportunity Fund to assist Isle of Wight County with the project. The company is eligible to receive state benefits from the Virginia Enterprise Zone Program, administered by the Virginia Department of Housing and Community Development. Through its Virginia Jobs Investment Program, the Virginia Department of Business Assistance will provide funding and services to support the company's recruitment, training and retraining activities.