Background Agreement on Chillicothe Paper Mill Closing Strengthens Local Control and Benefits

An informal agreement on the Chillicothe paper mill between the owner and the state’s economic development corporation was released on social media recently. It sets five “preliminary terms” before the revised shutdown date.

The Memorandum of Agreement between mill operator Pixelle (based in Pennsylvania, and owned by H.I.G. Capital of Miami, Florida) and JobsOhio was posted by Natalie Fahmy (Ohio Statehouse/Politics Reporter)on X / Twitter recently.

An outline of the five terms:

  • The property will be “contributed” for $1 for the purpose of redeveloping the land.
  • Pixelle is responsible for environmental remediation, demolition, and obligations to unions.
  • Pixelle will issue a WARN Notice by June 10th, and will fulfill its obligations in the following 60-day period.
  • Pixelle will retain proceeds from the sale of any equipment on the site.
  • All proceeds from the sale of the property will be for the benefit of former employees and the Chillicothe community.

“The MOU signed between JobsOhio and HIG/Pixelle was an important step in assuring that the local community has a voice in redevelopment of the paper mill site,” stated Tammy Eallonardo, Director of Greater Chillicothe & Ross County Development. “It puts us in control of the site — rather than an outsider who doesn’t know Ross County or its people.”

Background Agreement on Chillicothe Paper Mill Closing Strengthens Local Control and Benefits

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