Chinese Firm Withdraws From Arkansas Paper Mill Project

SEATTLE (Scrap Monster): Sun Paper has decided to abandon the previously announced $1.8 billion Arkansas paper mill project. The Chinese company had been planning to build a new mill in Arkadelphia, southwest of Little Rock, Arkansas.

In a letter addressed to Gov. Asa Hutchinson, Andrzej Bednarski, the company's international project director noted that the decision to cancel the project was influenced mainly by continued political friction and economic instability, along with the impacts caused by the recent outbreak of coronavirus. The collective uncertainties surrounding the project make it a better choice for both the parties to abandon the project, he said.

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Recently, Arkadelphia officials had madre clear its intentions to market the 1,000-acre site planned for the mill to be used for other potential projects. 

Meantime, Gov. Asa Hutchinson stated that the announcement is not unexpected, especially in the wake of the trade wars and the global economic downturn caused by the current coronavirus pandemic. The City will will work with local community leaders to attract other projects to the area, he added.

The project was initially announced in 2016. The construction, originally scheduled to begin in early-2017, was delayed indefinitely, on account of several factors including permitting issues.