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Prospective new owner of Canton paper mill submits letter of intent; mayor expresses ‘cautious optimism’
Saturday, 08 June 2024 16:53

From Staff Reports 

CANTON — Pactiv Evergreen announced on May 15 that it has made a deal and started the process to sell the former Canton paper mill site, Ashville television station WLOS (News 13) reported later on May 15.

“A spokesperson for Pactiv Evergreen told News 13 on the afternoon of May 15 that the company has signed a letter of intent to sell the site to Spirtas Worldwide, marking the first step in the sale,” News 13 noted.

“The spokesperson said over the next few months, Spirtas will conduct additional due diligence as it decides on and maps out its long-term redevelopment plans.

“Spirtas Worldwide is a demolition, environmental remediation and asset purchase company based in St. Louis, Missouri,” the TV station added

Meanwhile, Canton Mayor Zeb Smathers told the Daily Planet in a May 31 telephone interview that “I remain cautiously optimistic about Spirtas purchasing the mill site. ”

(After roughly 115 years of service providing the town with thousands of jobs, the Canton paper mill closed on May 24, 2023, signaling the permanent closure of the iconic site. Layoffs due to the mill’s closure totaled more 1,000, which was a devastating economic blow for Canton, with a population of 4,401 people.)

In the Daily Planet interview on May 31, Smathers added, “There are a lot of questions being asked on both sides — especially about the waterwater system. If he (Spirtas President and CEO Eric Spirtas) purchases (the Canton paper mill), his purchase will include the wastewater (system)... Since the 1960s, the mill has operated the wastewater system of Canton.”

Further, the Canton mayor said, “Right now, it is to be determined about the wastewater system. It is owned by Pactiv  (Evergreen Inc.). I’m confident that nobody can just cut off a wasterwater to a town. Our first priority to our citizens is taking care of the welfare, which (for Canton now) is supplying wastewater service. Then we’ll talk about ecomomic development.  

“The president of Spirtas said he wants to do the best for the town and country,” but nothing has been set in stone regarding ideas for what the company would do with the mill property,” Smathers said.

“They are a demolition and redevelopment group. The majority of what they do is demolition… “ But, the mayor said Spirtas is looking at possible demotion in certain areas of the mill — and redevelopment in other parts.

As for his aspirations for Canton’s future, Smathers told the Daily Planet, “It should be not just economically, but culturally, become a beacon of economic development, and also done in a way that honors our past.. We want to stay different,” particularly from Asheville.

“I think they’re looking at redevelopment,” the mayor said of Spirtas. “I think that site could be an economic furnace for the area. It could be a lot of things. I think there will be some demolition down there” at the mill.

“We don’t want just a good project, we want an amazing project. These people (Canton residents) deserve the best — and in my opinion they (the residents of Canton) are the best!”

So how long does the mayor think it will take before Spirtas decides whether or not to go ahead with purchasing the Canton paper mill? the Daily Planet asked.

“I think Pactiv wants a very short closing period, but, given the due diligence period, I don't think it will take a lot of time... Over the next several months, we’re expecting a decision to be made. They’re under due diligence right now. 

“We are very blessed to have bipartisan support in Raleigh and (Washington) D.C. to help us find our way forward,” Smathers said in concluding his Daily Planet interview. “It’s a shining example of what happens when people choose to be leaders — and not politicians.”

Meanwhile, the following is a statement released on May 15 by Pactiv Evergreen, the paper mill property’s current owner:

“Our exclusive letter of intent with Spirtas Worldwide is an important milestone in positioning our former Canton mill site for the future. Over the last year, we undertook a thorough process, working actively with the town of Canton and a number of potential interested parties. With Spirtas’ financial resources and significant industrial redevelopment experience, we are confident they are the right partner to invest in Canton for the future. We look forward to working closely with Spirtas in the coming months, as well as the town of Canton and other government officials, to negotiate a sale and ensure a smooth transition.”

In a May 16 story, News 13 reported that “many people in Canton are brokenhearted to hear about the possibility of no longer seeing the paper mill, which has stood at the heart of town for a century.

“A spokesperson for the mill owners, Pactiv Evergreen, confirmed Wednesday, May 15, that the company has signed a letter of intent to sell the site to Spirtas Worldwide — a demolition, environmental remediation and asset purchase company.”

The TV station added, “John Denton, a Canton resident, said he had worked for the paper mill for nearly 30 years and was still in disbelief that it had closed in 2023, noting, “‘The mill was Canton, you know. Canton was the mill,’ he said.

Also, News 13 reported, “Denton said he lost his job last year, and it was difficult to hear the news of plans to sell the plant. ‘I was one of the ones that left out whenever they closed it down. I work down there in medical. My father, (my wife’s) great father, and everything and everyone were down there,’ he said.

'”Ricki Denton, John’s wife, was very emotional when she heard about plans to sell the plant. She added that the paper mill holds a long family history, and she’s sad to possibly see it go.

“Others in the community said they see this potential change as a benefit and a way to bring jobs to Canton.

“Caleb Richi said that this is an opportunity for growth and an opportunity to look forward to what’s next for the site.

“‘Definitely tear it down and put something else there. There’s a lot of commercial land right there,’ he (Richi) said,” News 13 reported.


 



 


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