The new owners of Chillicothe's paper mill expect to invest $35 million into the facility over the next couple years, but say they aren't sure yet what the desire for a more efficient operation may mean in terms of jobs.

Through an email exchange with the Chillicothe Gazette, (Chillicothe, Ohio, USA) Pixelle Specialty Solutions (Spring Grove, Penn., USA) President Tim Hess and Chairman Steve Klinger offered insights into their plans for the mill after Pixelle obtained the property and several others from Glatfelter in a deal that closed Oct. 31.

"Our sector of the paper industry is cost-competitive to the extreme," Klinger said. "To thrive, mills have to be efficient, productive and low cost. In the past five years, uncompetitive mills closed or shifted to other paper grades. We've developed approaches to manufacturing paper that are customized, differentiated and effective. Some traditionalists consider our approach 'out of the box', but we know how to drive efficiencies and compete."

Klinger said the company feels the details of its approach are part of its competitive advantage and, as such, would be kept inside the mill. He did, however, detail the five areas that will make up the $35 million in investment that will be made over the next several years. They include questions about the future size of the workforce always arise when ownership of a major employer changes hands. Klinger indicated time and the ability to compete well in the market may produce the answer to those questions as the company works toward improving plant efficiency.

"Operating efficiently often requires becoming leaner," he said. "We're reviewing how that may apply here. But becoming lean isn't the goal. Competing effectively is the goal, and to do that, we need great employees executing the right strategy."

In its $360 million acquisition from Glatfelter, private equity firm Lindsay Goldberg obtained paper mills in Chillicothe and Spring Grove, Pennsylvania, a converting operation in Fremont and wood yard operations in Piketon, Maryland and West Virginia.  Lindsay Goldberg re-branded those operations under Pixelle Specialty Solutions LLC. About 1,720 employees work for those operations that were part of the acquisition.

Hess said the company plans to continue actions begun under Glatfelter both in trying to reduce its environmental footprint and in direct community involvement.

"In 2017, (the mill) completed a $25 million investment to upgrade three boilers by converting two coal-fired boilers to natural gas and upgrading the third boiler's tire-derived fuel and electrostatic precipitator systems," Hess said. "This investment reduced air emissions more than 90%, decreased energy use and increased energy efficiency. We also improved our tall stack condition and appearance.

"(The mill) reduced odor by improving our equipment, processes and reliability, enhancing burner controls for our incinerator and lime kiln and establishing our Concern Line (800-0532-4975) and a website for the community to communicate concerns directly to us."

Plant manager Keith Wahoske said the reduction in air emissions was primarily in the two converted boilers. In those boilers, particulate emissions were reduced by 95% and sulfur dioxide emissions saw a 99% reduction.

Peter Kim, utility superintendent at the plant, said that in addition to reducing emissions, one of the main benefits of the conversion of the coal-fired boilers to natural gas comes in the life of the machinery. Natural gas is cleaner burning, reducing the impact of corrosion on the machinery As a result, maintenance needs have lessened in those two boiler systems.

In terms of community involvement, Hess pointed to the mill's investment in The Mighty Children's Museum, the Leader in Me program in the schools and a Tiffin Elementary partnership. On the Lindsay Goldberg website, the company speaks directly to establishing long-term partnerships and "building great companies," with a letter from firm founders Alan Goldberg and Robert Lindsay stating it is often able to invest in the growth of a business over a 10-year period and maintain ownership for up to 20 years. Klinger's management team boasts about 150 years of combined experience in the paper industry with such firms as Georgia-Pacific, Smurfit-Stone, Crown Paper Group and Golden West Packaging Group.