Shandong Tranlin Paper to Invest $2 billion in Greenfield Virginia Operations

Virginia Governor Terry McAuliffe announced yesterday (June 18) that Shandong Tranlin Paper Co., Liaocheng, China, will invest $2 billion over five years to establish its first U.S. manufacturing operation in Chesterfield County--a combination paper mill and fertilizer plant using agricultural residues such as straw and corn stalks as the primary raw material. According to a report by the U.S.-based business-to-business publication MFRTech, the investment represents the largest Chinese investment and job creation project in Virginia history and is the largest Chinese greenfield economic development project in the U.S. Virginia competed against several other states for the project, which reportedly will create 2,000 new jobs by 2020

The new paper mill and fertilizer facility will be located on an 850-acre site in the James River Industrial Center of Chesterfield County. No specifics have yet been released, but the company annually produces some 400,000 metric tons of pulp, 700,000 metric tons of paper, 400,000 metric tons of organic fertilizers, and 2.4 billion food and medical packaging boxes at its current operations in China, according to the MFRTech report. The main products, with more than 100 varieties and five categories, include refined natural pulp, natural culture paper, natural household paper, food and medical packaging boxes, and organic fertilizers. 

In the MFRTech article, Maurice Jones, Virginia Secretary of Commerce and Trade, noted that Shandong Tranlin "is a national leading R&D Center for straw-based pulp and paper in China, among many other awards for innovation and invention, and will enter the U.S. market with its new paper and fertilizer manufacturing facility in Chesterfield County. The new 850-acre campus offers the potential for Tranlin to eventually produce its full product lines and continue to grow its operation and customer base while using Virginia's natural resources. The Tranlin operation in Chesterfield County represents a project of historic proportions for Virginia." 

Todd Haymore, Virginia Secretary of Agriculture and Forestry, added that "Tranlin represents a tremendous opportunity for Virginia's corn and small grain producers by creating a lucrative new market for agricultural residuals that are typically left in the field. Based on the agricultural supply chain opportunities associated with the project, the economic benefit to farmers in this region alone could exceed $50 million per year once the project is complete and operating at full capacity." 

Based on analysis performed by the U.S. Department of Agriculture, the Virginia Department of Agriculture and Consumer Services, and Virginia Tech Cooperative Extension, the economic benefits of this operation will be felt throughout the agriculture sector, from new demand for agricultural equipment, to new jobs for direct and indirect agricultural jobs. In addition, this project will help preserve farmland by providing farmers a new opportunity to derive additional economic return from their land and equipment, creating positive economic pressure to maintain it in farming use, MFRTech reported. 

The harvest of straw in the spring and corn stalks in the fall for use by Shandong Tranlin will be two new cash crops for Virginia producers, in addition to other fibrous products from the surrounding area. From an environmental standpoint, the harvest of these agricultural residuals is compatible with the Chesapeake Bay-friendly no-till crop production practices these producers are already using.