Marketing the Site, Employee Support, and Redevelopment Emphasized
Chillicothe — The Ross County Commissioners have released a second statement on their response to the threatened closure of the Pixelle paper mill.
After their first statement on May 7th, the commissioners have hosted almost-weekly ‘paper mill response team’ work sessions on the April 15th announced closure of the plant in Chillicothe.
“The eminent priority” for the commissioners is “supporting efforts to market the site to a new investor, harbor resources for employee support, as well as long-term planning for redevelopment and economic growth for Chillicothe & Ross County.”
They also state they are encouraging “innovative alternative uses for the Pixelle site, as long-term contingency strategies are developed.”
In the statement, the commissioners say closing the mill would cause “a total economic loss of $1 billion across multiple industry sectors in the region.”
That is according to an economic impact analysis recently commissioned by the Montrose Group, an economic development, strategic planning, corporate site location, and lobbying firm that is an advisor / consultant to Greater Chillicothe & Ross County, Ohio Development – the city, county, and regional economic development agency.
The paper mill dominated the Chillicothe economy in the twentieth century under the ownership of Mead Corporation, and still involves many secondary industries – from maintenance and shipping, to chemical consultants and local lumbering. Some employees also live in neighboring counties.
The mill has been operated by Pixelle Specialty Solutions since 2018, which was bought by private equity firm H.I.G. Capital in 2022. On April 15th, they announced the mill would be shut down. An official notification – a “WARN Notice” – stated that the 830 employees would lose their jobs on or after June 13th.
However, at a rally on April 18th, U.S. Senator Bernie Moreno said he had gotten the concession that H.I.G. Capital would delay closure to the end of the year.
And yet, there has been no retraction of the June 13th date. The commissioners: “Despite earlier public statements made by H.I.G. Capital and Pixelle that the facility would remain operational through the end of 2025, it has become increasingly clear that at least some operations may cease prior to that date.”
The commissioners’ statement implies that a list of potential new owners or operators grows: “Efforts to market the site have yielded multiple visits by potential investors in paper and other manufacturing industries, a number of which remain engaged.” The response team’s last two meetings have been in executive session, so no company names have been released.
But, this is contingent on what owner Pixelle / H.I.G Group would all – they may have a non-competition clause that would prevent a continuation of paper manufacturing on the site.
“The Mead” was the largest local employer in the mid and late twentieth century, though it is now only one of the three top industries. The commissioners’ statement also reflects further broadening the local economic base: “Continued efforts to grow & diversify the Ross County economy extend beyond the Chillicothe paper mill site, and the Ross County Commissioners are committed to an aggressive approach to position the community for long-term resiliency.”
The governmental body has been holding “weekly response meetings in conjunction with stakeholders and partners…and is intensifying its work to position the site for future investment and long-term economic strength.”
They continue their pattern of working with other local agencies and not acting unilaterally, saying “continued efforts in marketing this site, and developing a long-term approach to support economic growth, is critical and must be collaborative.”
The commissioners “support the possibility of displaced employees. In partnership with workforce development agencies and other stakeholders, several support initiatives are being launched.” They list a Paper Mill Employee Resource Center, Online Resource Hub, and On-Site Support at Pixelle.
For a report on their first statement, and an overview of the partners in the paper mil response team, read my May 8th story “‘Coordinated Response and Strategic Action Plan’ on Chillicothe’s Paper Mill Closing.”
(See also my investigations into the history and architecture of the 178-year-old sprawling paper mill facility on my Facebook page, and a summary history of the corporate ownership of the mill after Mead’s ownership from 1890 to 2002 on my blog.)
The statement that was released on the commissioner’s Facebook page:
