Chillicothe — It’s been half a month since the devastating news that the paper mill that dominated the town for a century would be shut down very soon…and then three days later, news of a reprieve until the end of the year, giving more time for hope.
Since then, when I encounter officeholders or community leaders, I ask them what they are doing about the situation. Here are my interviews with them.
(Also see my report on the “paper mill response team” with the Ross County Commissioners, soon.)
Ohio State Senator Wilkin: Owner Appears to be Open to Sell
Ohio State Senator Shane Wilkin said, on April 21st, he was and will be in meetings in Columbus and Ross County regarding the paper mill.
He said U.S. Senator Bernie Moreno again spoke with the private equity company that owns Pixelle and the mill, H.I.G Capital, and that there appears to be an interest in selling – if a buyer can be found. Wilkin was attending the Ross County Republican Party’s Lincoln Day Dinner.
His Senate District 17 includes all of Ross County.
Ohio Representative Peterson: Mill is Economic Core in County
State Representative Bob Peterson was also at the Lincoln Day Dinner on April 21st, and said this is about jobs and continuing to have an economic development core in Ross County.
He said the state will do everything it can to make sure other companies are growing in Ohio, and give them every opportunity to succeed at running a paper mill.
His Ohio House District 91 includes the western third of Ross County.
State Representative Johnson: Mill is Viable and He is Optimistic
Ohio Representative Mark Johnson says the Pixelle paper mill in Chillicothe is viable and profitable, and he is optimistic that a buyer will be found.
He said nothing is wrong with the workforce, but there are management issues and a lack of investment. The pulping mill and pulping process are viable and profitable, he says, but the Number 12 machine needs upgrades – and that should happen with the next owner.
Johnson said that the state economic development corporation “Jobs Ohio” is funded through the legislature, and he told them they need to help the region: “You can save a thousand jobs in Southeast Ohio easier than you can create a thousand good-paying jobs in Southeast Ohio.”
He was attending Congressman Dave Taylor’s chat at a Chillicothe & Ross County Chamber gathering on April 21st.
Johnson is State Representative for the 92nd Ohio house district, which includes Ross County from Chillicothe eastward.
In previous stories, I have statements from other officials and community leaders:
Chillicothe Mayor Feeney: City Government Depends on Income Tax from Mill
Mayor Luke Feeney addressed the paper mill situation in his briefing to council on April 28th.
Feeney said he has been with the city since 2015 and never saw such a response from officials like the rally on Friday, April 18th – he had never seen all the officials who appeared there in same room. This is a lot of political weight.
The city relies on the income tax to operate. Feeney said that 100% of mill employees pay the city income tax – and that is $1.4M to $1.5M, about 8% of the city’s total income tax.
The city must approach on two fronts: Be optimistic…but also be realistic about the city budget if the mill closes after December. Feeney has instructed all department heads to consider their budgets.
The city auditor will have the usual “tax budget” prepared in July, to serve as guidance – though that is never the final say. The city has financial reserves that should get it through employee attrition to save money, but he’s unsure after a closure on January 1st.
“I will say: My optimism level on Tuesday, April 15th, was just about zero. My optimism on Good Friday was way higher than zero.”
Feeney believes there is capital out there to keep the mill open. He said he will keep council and the community informed.
Learn more in “Mayor’s Caution to Chillicothe Council on Paper Mill Situation.”
Congressman Taylor: State Has Leverage Over Owner
In an April 23rd event sponsored by the Chillicothe Ross Chamber of Commerce, U.S. Representative for Ohio David Taylor said he is working closely with U.S. Senator Bernie Moreno – who got the reprieve from the private equity firm H.I.G. which owns the Pixelle plant.
Taylor said Pixelle has not upgraded the mill, and that “a million issues” would come up if an inspector walked through. He said H.I.G. has other factories in Ohio where they need to be cooperative with state government, and the state probably has the most leverage over H.I.G. – whether with the proverbial carrot, or stick.
Taylor said “it would not be unlikely” to find a new mill operator who knows how to operate it at a profit.
He had said that anyone who has a need because of the paper mill can contact his local office, where constituents can get access to federal programs to help a transition to new job, and deal with time between jobs.
Learn more from that event in “Congressman Taylor Chats at Chillicothe & Ross County Chamber Gathering.”
Local Economic Leader Eallonardo: The Right People are in the Right Place to Act
At the April 18th news event, I asked Tammy Eallonardo, the director of “Greater Chillicothe and Ross County Development,” for more context about the situation with the paper mill.
She said the turnout of state and U.S. leadership shows that Chillicothe is important to the state as well, and she thanked those who helped them in their hour of need. Eallonardo said she is encouraged that they got the reprieve, and that it gives time to get their footing and see if they can salvage 830 jobs.
How much chance there is to save the it? She said it is impossible to say, but they have faith and confidence that the right people are in place to do so. If energy has anything to do with outcome, then they are set to succeed.
Learn more in “Economic Development Leader Gives Insights on Delayed Closure of Chillicothe Paper Mill.“
Eallonardo has helped lead two hour-long ‘paper mill task force’ meetings with the Ross County Commissioners since then.
Chillicothe Ross County Chamber CEO Throne: Considering What Roles Everyone Must Fill
When the worst news broke on on April 15th, I caught Mike Throne, CEO and president of the Chillicothe Ross Chamber of Commerce, between meetings.
After making sure the former mill employees have resources, Throne said they will need to work on how to fill “a big gaping hole in our community.”
He said the chamber, county, city, and economic development will consider what role each will have in marketing the mill site.
“As I look at it, it’s probably unlikely that another paper mill will go in there.” But Throne said if another paper company is looking for a viable market…he knows of a place.
Learn more in “Response Coming After Announced Closure of Chillicothe’s Paper Mill.“
This was three days before the reprieve to the end of the year was announced, on April 18th.
Also see my two stories on the upbeat April 18th news event, starting with “Delayed Closure of Chillicothe Paper Mill Cheers News Conference / Rally.“
JobsOhio: Unique Rapid Response
I have heard Ohio’s economic development corporation “JobsOhio” mentioned several times as an ally to help save or reuse the paper mill:
“JobsOhio, the state’s unique private economic development corporation, acts as a catalyst for high-growth business investments and job creation that are helping propel the state’s ingenuity and ambitions forward.
“Founded 12 years ago, JobsOhio is a first-of-its-kind, state-authorized, nonprofit built with private stable financial resources, seasoned professionals with private sector expertise, a statewide network of economic development partners, and the long-term investment outlook needed to attract, retain, and expand businesses, payrolls, and career opportunities across the state.”
The October 13th, 1980 aerial photo of “The Mead” paper mill in Chillicothe shows “The Chief” and another facility under construction to the left of the famous smokestack. Find this image in the Ohio University Libraries Digital Archival Collections.
