Despite attempts to save it, the longstanding Pixelle Specialty Solutions in Chillicothe closed its doors permanently on Sunday.
The southern Ohio paper mill announced its planned closure in April after nearly 200 years of operating in Ross County. Local leaders and state representatives alike pushed to delay its shuttering, but ultimately the company ceased production this weekend.
Not only did the paper mill employ more than 800 people, it fed a larger industry in the state. Executive director of the Ohio Forestry Association Jenna Reese said the mill’s closure will hurt Ohio loggers.
“This is gonna have ripple effects throughout the state,” she said. “We're unfortunately anticipating attrition.”
With nearly 8 million acres of forest in Ohio, logging is a major industry. It contributes $1.1 billion to the state economy annually, according to Reese. Forest products, more broadly, make up more than a quarter of Ohio’s agricultural industry, which tops the state.
Impact on the industry
Prior to its closure, Pixelle was the state’s largest purchaser of low-grade timber. That grade of hardwood makes up the majority of an average Ohio landowner’s timber harvest, Reese said.
“We have most of our logging happening in southern Ohio, [and the] majority of those loggers did 50% or more – some closer to 90 to 100% – of their work for Pixelle,” she said.
Pixelle consumed more than 600,000 tons of wood fiber annually, and its closure will leave a major gap in the Ohio logging industry. Both logging companies and private landowners who contract with those businesses will take a hit from the paper giant’s fall.
While Ohio does have some large logging operations, it's the family-owned businesses that will suffer the most, Reese said.
“We are going to see it hit small logging operations, the one- to two-man crews. And these are all, you know, second, third generation family operations.”
What’s next?
Industry leaders are already working on figuring out how to open up new markets for the low-grade timber. Reese said her organization is working with surrounding states to absorb the sudden hit.
But, she’s hopeful that the mill could be purchased in the future or another high volume consumer of low-grade timber could set up shop anywhere in Ohio.
“It would be helpful for loggers, it would be helpful for landowners who are trying to manage their woodlands,” Reese said. “It would just give us a more diversified, reliable market for our fiber.”
She urges Ohio leaders to look for businesses that can fill the large void Pixelle leaves behind.
“They're in excellent positions to attract businesses to our state, whether they're elected officials or economic development groups. That's how they can help us,” she said.
