Company to invest $275 million, create 140 jobs in Hanover paper mill

Company to invest $275 million, create 140 jobs in Hanover paper mill
Bear Island Paper Mill (Source: Hanover County Economic Development)

HANOVER, VA (WWBT) - A Canadian company is set to invest $275 million into the old Bear Island Paper Mill in Hanover County, which will create 140 new jobs.

Cascades Inc., a green packaging and paper tissues manufacturing company, will purchase the mill for $32.2 million and invest $275 to $300 million in upgrading equipment.

"This project is directly in line with the goals of our strategic plan which include, among other things, to invest in our core sectors of packaging and tissue through modernization, and expand our geographical footprint," Cascades CEO Mario Plourde said. "In addition to the paper machine that is particularly well suited for conversion, the Bear Island site is strategically located for raw materials and logistics. It also offers a platform for future development. We expect Bear Island facility to be a highly competitive asset that will significantly contribute to the success of our containerboard operations."

The new machine is expected to have a production capacity of 400,000 tons a year.

Cascades will restart manufacturing paper under a 27-month lease and will begin production of recycled containerboard in 2021.

"The Bear Island Facility has played a critical role in the local Hanover economy for almost 40 years, and we are excited to see that continue with the significant capital investment being made to up-fit and repurpose the plant, along with the new jobs that this announcement will bring.  I look forward to our partnership with Cascades Inc. for many years to come," Chairman of the Hanover County Board of Supervisors Sean Davis said.

Cascades is headquartered in Quebec, with more than 90 locations across North America and Europe – employing 11,000 people.

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