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More than 200 jobs returning to International Paper

May 17, 2011
By Richmonf Times-Dispatch Staff

International Paper will invest $83 million in a portion of its closed plant in Isle of Wight County to create 213 jobs for the production of fluff pulp that can be used in diapers and other absorbent products, Gov. Bob McDonnell said today.

While the number of jobs is far short of the 1,100 at the plant when its closure was announced in 2009, it was welcomed as a boost for a region that lost its economic anchor and confirmation of the site's desirability.

"After International Paper’s closure that resulted in a devastating job loss, it is hugely significant that the company has decided to make this $83 million investment in a fluff pulp operation at its former mill," McDonnell said in a news release. "This project is a great sign of the commonwealth’s ongoing economic rebound. It will help offset the economic ripple effect caused by the company’s 2009 announcement and it is further evidence that Virginia is wide open for business.”

Board of Supervisors Chairman Thomas J. Wright III said the announcement "comes at a critical time for Isle of Wight County as we strive to maintain excellent schools and services in a difficult economic environment. We would like to thank the displaced workers and our citizens for their confidence in our ability to attract desirable industrial partners.”

The Isle of Wight operation will be 89 percent energy self-sufficient, using power generated from carbon-neutral biomass, said Mark Sutton, an IP senior vice president.

"The capability of producing energy from renewable biomass resources makes the remaining portions of the Franklin Mill site an ideal location for other partners looking for on-site green energy options,” he said.

Former Virginia gubernatorial candidate Terry  McAuliffe has an investment firm that has announced it is investigating whether a wood pellet production facility would be practical at the plant. McAuliffe has said the factory could be ideal for renewable-energy products.

Franklin Pellets LLC's goal is to use the plant to produce up to 500,000 tons of wood pellets a year. The company would then export the material through the Port of Virginia to Europe, where utility companies are increasingly using wood pellets as fuel to meet renewable-energy mandates.

Peter O’Keefe, McAuliffe’s business partner, said he was pleased to hear about International Paper’s decision to reuse a portion of the plant. That decision does not preclude their plans. “It is not a conflict,” he said. “We are moving forward with our process. We hope to know something in the near future.” He said they expect to make a decision by year’s end.

Copyright Richmond Times-Dispatch. Used by permission.

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