ASHEVILLE, N.C. (828newsNOW) —

The State of North Carolina is suing Pactiv Evergreen for repayment of a $12 million grant related to the paper mill it closed in Canton in 2023.

Attorney General Josh Stein on Thursday filed the lawsuit on behalf of the North Carolina Department of Commerce, saying Pactiv Evergreen had breached the 2014 grant agreement by closing its paper mill in Canton in 2023.

“Taxpayers in North Carolina invested in Pactiv Evergreen to bolster our state’s economy,” Stein said in a news release. “We held up our end of the bargain, and we cannot let Pactiv cut and run away with our state’s money. My office has been working with Pactiv over the last year to address the company’s obligations under the JMAC agreement, but it has become clear that legal action was necessary to hold Pactiv accountable.”

IDLED CANTON PAPER MILL HAS A PROSPECTIVE BUYER

The paper mill, which had been in operation for more than 100 years, employed more than 1,000 workers.

“To me, it boils down to broken promises,” Canton Mayor Zeb Smathers said. “This is a company that broke our economy, they broke our spirit, they broke our households. When you break promises, you pay. I think Josh Sten made that clear today.”

“Pactiv Evergreen’s closure of the Canton paper mill was a gut punch to our state’s economy and the people of Canton and Haywood County,” Gov. Roy Cooper said in the release. “This company broke its commitment to keep the mill open, and the state is taking action to hold them accountable.”

For decades, smokestacks dominated the skyline in Canton, N.C. But that changed when Pactiv Evergreen closed its paper mill in June 2023, eliminating about 1,000 jobs.
Downtown Canton, N.C., has persisted despite the closure of the long-standing paper mill in mid-2023.
For decades, smokestacks dominated the skyline in Canton, N.C. But that changed when Pactiv Evergreen closed its paper mill in June 2023, eliminating about 1,000 jobs.

The JMAC Agreement provided Pactiv Evergreen with $12 million in economic development incentives in exchange for a commitment to maintain operations and at least 800 jobs at Pactiv Evergreen’s paper mill in Canton through Dec. 31, 2024, the news release said. Pactiv Evergreen closed the mill and terminated all its employees in May 2023.

“I’m very appreciative for the actions of Attorney General Stein and the DOJ, but not surprised,” Smathers said in the news release. “AG Stein and his team are doing exactly what they said they would do when the mill closed, hold the company accountable. We teach our children that when you make promises, you keep those promises. Pactiv Evergreen took $12 million from the State in exchange for a promise to keep the mill open; a promise they did not keep. We fully support the DOJ’s efforts to recover this money and hold Pactiv accountable to the taxpayers of North Carolina.”

CLICK HERE to see a copy of the complaint.

Last week, Canton received a glimmer of hope for the future of the abandoned paper mill site when the company Spirtas Worldwide confirmed it had signed a letter of intent to purchase the Pactiv Evergreen property. Spirtas Worldwide describes itself in its website as specializing in demolition, remediation and asset purchases.

Smathers said last week, “It’s not a done deal, but there’s a high likelihood Spirtas will be the owners of the mill. I think that could happen in a small amount of time.”