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Business & Economy

Workers, Chillicothe locals prepare as paper mill closure draws closer

The Pixelle plant is located in Chillicothe, Ohio.
Daniel Konik
/
Statehouse News Bureau
The Pixelle mill located in Chillicothe, Ohio, in July 2025.

Jeff Allen has been interviewing for jobs for the first time since he graduated high school. He鈥檚 56.

鈥淚 don鈥檛 think I was very good at it,鈥 Allen said in an interview. 鈥淚 never thought I鈥檇 be doing it again.鈥

He took down resume suggestions from his wife, Angie, with whom he shares five children and nine grandchildren. His work history section comes easily鈥攖here are the four decades of surviving mergers and acquisitions at the 200-year-old Chillicothe paper mill, and then, those nine months at Domino鈥檚 Pizza.

鈥淚f you鈥檙e going to get a new job making what we鈥檙e making at the paper mill, you鈥檙e probably going to drive to Columbus or you鈥檙e going to drive over to Jeffersonville, where the battery plant is going in, they still need more work over there,鈥 he said. 鈥淭here鈥檚 a steel mill just on the other side of the river down in West Virginia.鈥

Allen, a third generation mill worker and the United Steelworkers Local 731 President, found out close to Easter that Pixelle Specialty Solutions would cease all production at the plant on East 8th Street. More than 700 of his colleagues will be without work absent an eleventh-hour buyer.

鈥淭he morale is really down, it鈥檚 almost like watching a loved one die,鈥 Allen said.

Staving off closure

Pixelle and its now-parent, the private equity firm H.I.G. Capital, took over at the paper mill in 2019. Before that, even as management came and went, residents often referred to it as the Mead paper mill.

Pixelle鈥檚 closure was imminent at first. Then, U.S. Sen. Bernie Moreno said he convinced H.I.G. to delay until Christmas.

That was Good Friday, when he and other elected officials brought together a large crowd of residents on the edge of Chillicothe. They celebrated, flooding the sunbaked parking lot of a credit union, the faded red-and-white smoke stacks puffing behind them.

Now, according to another government mandated WARN mass layoff notice, Pixelle maintains it will shutter Aug. 10. Moreno sees the move as a 鈥渢otal disgrace,鈥 he said Thursday, but is confident the site will grab another owner.

鈥淚鈥檓 proud of the fact that our involvement at least got 60 more days of payroll than it would have otherwise,鈥 Moreno said in an interview.

The bliss from the Good Friday rally didn鈥檛 last long for Allen.

鈥(Pixelle) came in and basically said we fired our customers and we鈥檙e trying to get them back,鈥 he said.

So for months, workers new and old have clocked in and out under a cloud of uncertainty. Some machines are already out of service. The majority of Allen鈥檚 colleagues, those who haven鈥檛 already fled, could get as little as one week of severance, he said.

What comes next

The rest of the community in Chillicothe is scrambling to figure out what comes next, too.

鈥淚f you had told me to guess at what that number was going to look like, I would have never said $1 billion for the state of Ohio, because I wouldn鈥檛 have thought that broadly,鈥 said Mike Throne, chief executive officer of the Chillicothe Chamber of Commerce.

Throne is referring to an economic analysis done on the paper mill and the region in May, which concluded the plant contributes an additional 1,100 indirect jobs and 750 induced jobs statewide. Closing it could leave a $78.4 million hole in state tax revenue.

鈥淚t鈥檚 a declining market for what they did there and it鈥檚 not sustainable for the long haul,鈥 he said.

So behind the scenes, federal and state offices, like Moreno鈥檚, are holding weekly strategy meetings. The state鈥檚 powerful, private economic arm, JobsOhio, is courting potential buyers with lucrative incentive packages.

Throne is grateful for all the attention, but he said Chillicothe can take care of itself鈥攈e鈥檚 also relying on the retired HR executives in town holding mock interviews, the neighbors reading over resumes.

鈥淚 don鈥檛 need the government to hand me a pile of money right away,鈥 Throne said, 鈥渂ut I need them to be available and ready.鈥

Allen doesn鈥檛 look to federal or state officials, either. He blames the private equity firm cutting what feels like those final paychecks.

鈥淭hey couldn鈥檛 make it work. They couldn鈥檛 get the customers, they couldn鈥檛 get the orders, and I鈥檓 not sure how hard they worked at it,鈥 he said.

As of July 9, several interested parties had put bids out with Pixelle. As they wait, Throne, with county and city leaders, is collecting signatures on a letter to H.I.G begging the firm for more collaboration in what they calls this 鈥渃ritical economic transition鈥 for the region.

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Business & Economy Ohio NewsChillicotheMills
Sarah Donaldson covers government, policy, politics and elections for the Ohio Public Radio and Television Statehouse News Bureau. Contact her at sdonaldson@statehousenews.org.
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