The closure of Canton’s Pactiv Evergreen plant will have far-reaching implications, companies say
MARCH 9, 2023 — In addition to the hundreds of workers at Canton’s Pactiv Evergreen paper mill, many of the companies that supply the manufacturing facility are also economically tied to it and will feel the impact when it closes later this year. (Image credit: WLOS staff)
CANTON, NC (WLOS) —
The announced closure of the Pactiv Evergreen paper mill in Canton has implications across the region.
The closure of Canton’s Pactiv Evergreen plant will have far-reaching implications, companies say
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In addition to the hundreds of workers at the mill, many of the companies that supply the manufacturing facility are also economically tied to Evergreen. These include freight forwarders, railway lines and wood suppliers.
“What we do know is that there will be widespread implications,” said Southwestern Commission executive director Russ Harris.
THE CANTON FACTORY CLOSURE IS PART OF A RESTRUCTURING PLAN, SAYS PACTIV EVERGREEN
The Commission oversees and supports economic development in the state’s westernmost counties.
At the mill, a steady stream of trucks continues to bring paper products from the mill to multiple locations in the area. The transport companies, like rail transport companies, are the arteries that transport needed goods to and from the factory. These commodities include the enormous tonnage of wood chips needed for the manufacturing process. For the wood suppliers who supply the wood chips, the loss of mill business will be significant.
“We know that Evergreen is a major player in the region,” Harris said. “They source $150 million worth of chips annually from within 200 miles.”
ECONOMIC IMPACT OF CLOSING PACTIV EVERGREEN PAPER MILL TO 500 MILLION USD ESTIMATED
The end of that procurement, Harris said, will have a ripple effect that is already being felt.
“We already received a call from a company in Cherokee County that announced they were going out of business,” Harris said.
Among the many trucking companies that will be impacted are North Carolina-based Adkins, Kentucky-based NYS Transport, Tennessee-based TLD Logistics, and small to medium-sized regional trucking companies such as Tennessee-based Tim Patterson Trucking.
CANTON ENTREPRENEUR CONCERNS HOW CLOSING OF PAPER MILL WILL AFFECT THEM
The two main rail lines serving the plant are Norfolk Southern and Blue Ridge Southern. Both lines receive a significant amount of stores that transport products to and from the facility. But for Blue Ridge Southern, success will be significant. According to the Southwestern Commission, the Evergreen mill provided about 80 percent of Blue Ridge Southern’s business.
While the full impact of the plant closure and the multi-stage ripple effect has yet to be revealed or understood, the Southwestern Commission expects it to be broad and deep.
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