Domtar, Martin County Agree on New Economic Incentives for Plymouth Paper Mill

The economic incentives were passed last week.

SEATTLE (Scrap Monster): After almost a year of negotiations, Domtar Corporation and Martin County officials have reached an agreement on new incentive package for Domtar’s Plymouth Paper Mill. The economic incentives were passed last week.

According to David Bone, Manager, Martin County, the incentives are essentially a tax cut based on certain conditions. Firstly, Domtar needs to invest $90 million into plant modernization over a period of four years, on which the company will be reimbursed with 70% of the taxes on the investment. The company will have to pay back the money, in the event of closure of the mill within the next eight years. Another condition states that the mill is required to provide 30 full-time jobs with $64,000 salaries, Bone said.

ALSO READ: Domtar's Results Impacted by Low Paper Volumes

Meantime, Domtar reiterated its commitment to stay in eastern North Carolina. The recent agreement on incentives will help the company to further improve the efficiencies of the mill assets and reduce costs by optimizing its pulp operations, it noted.

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