US-based Midwest Paper Group said that it will invest $30m to reconfigure the former Appleton Coated mill located in Combined Locks, Wisconsin and create up to 321 jobs.
Image: Wisconsin Governor Scott Walker. Photo: courtesy of Gage Skidmore/Wikipedia.
The former Appleton Coated facility was purchased by Midwest Paper Group’s parent companies, Industrial Assets and Maynards Industries, shortly after the mill was shut in September 2017.
Upon the acquisition, the two companies decided to run the mill as an ongoing operation after they failed to find a suitable buyer.
Midwest Paper Group president Kyle Putzstuck said: “We have received overwhelming support and encouragement to restart this mill – support and encouragement from the owners, community, customers, suppliers, government officials, contractors, and most importantly, our employees.
“The additional support from the state of Wisconsin being announced today is a further affirmation that we are on the right path and represents a significant investment in continuing the 129-year-old papermaking tradition in Combined Locks.”
The proposed investment is expected to create 594 additional indirect jobs in the region.
As part of the reconfiguration project, Midwest Paper is planning to convert the facility that produces printing and writing grades of paper to accommodate the production of packaging grades.
Work involves installation of equipment to facilitate the conversion of waste paper to medium and linerboard used in corrugated and other packaging.
Initially, the company plans to produce both grade lines, before embarking on the expansion of production of its packaging grades of paper to meet the growing demand for packaging papers.
The company is receiving up to $1.8m in state tax credits from Wisconsin Economic Development (WEDC) over a three-year period for the modernization of the paper mill.
Wisconsin Governor Scott Walker said: “We commend Midwest Paper Group for having the foresight to realize that the old Appleton Coated mill, which has been a vital part of the community for generations, has the potential to remain a major employer for generations to come.”
In December last year, the firm restarted one of its three paper machines for production.
All three paper machines are currently in operation, with about 310 workers at the site.