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Thursday, February 20, 2025

North Carolina reaches multimillion-dollar settlement with former owner of closed paper mill

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Jordan Whichard Chief Deputy Secretary | North Carolina Department of Commerce

Jordan Whichard Chief Deputy Secretary | North Carolina Department of Commerce

Attorney General Jeff Jackson and Governor Josh Stein have announced a settlement with Pactiv Evergreen on behalf of the North Carolina Department of Commerce, the town of Canton, and Haywood County. As part of the agreement, Pactiv will pay $6.25 million in financial restitution. Additionally, Pactiv has agreed to cease its legal efforts to reclaim its 2023 and 2024 property tax payments and will not bill Canton for operating costs related to the town’s wastewater treatment plant.

This settlement resolves litigation by the Department of Justice against Pactiv concerning millions in grant funds from the North Carolina Department of Commerce. In 2023, Pactiv unexpectedly closed its paper mill in Canton after more than a century of operation, affecting over 800 workers.

“Pactiv broke its promise to the state and the people of Canton, and today’s settlement holds it accountable for violating its agreement,” said Attorney General Jeff Jackson. “This settlement will allow the people of Canton and Haywood County to immediately put millions back into rebuilding their economy after the mill’s closure, and it will shield them from future litigation from Pactiv.”

Governor Josh Stein expressed satisfaction with reaching a resolution: “I am pleased the state of North Carolina, town of Canton, and Haywood County have reached a settlement with Pactiv worth millions of dollars to Canton and Haywood.” He added that this marks a new chapter for rebuilding stronger.

N.C. Commerce Secretary Lee Lilley emphasized that this step is crucial for healing: “These funds will not only drive future economic development but also help the community recover from impacts like job loss.”

Canton Mayor Zeb Smathers sees this as an opportunity: “This settlement marks the beginning of a new chapter for Canton—a chapter that will build the ‘hometown of tomorrow.’”

Kevin Ensley, Chairman of Haywood County Board of Commissioners, noted that this financial boost allows honoring past achievements while building a future based on strong community values.

Under this agreement:

- $6.25 million will be repaid to local entities; $5.75 million goes to Canton and Haywood County while $500,000 is allocated to the state.

- Pactiv waives billing rights for wastewater services provided since 1964.

- Legal challenges regarding tax payments are withdrawn.

Last month, Pactiv sold its mill site in Canton to Spirtas Worldwide ending all business activities there.

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