“Global Win Wickliffe will be a tremendous addition to west Kentucky, and the 500 jobs associated with the reopening of this paper mill will provide opportunities for years to come,” Bevin said. “Since the facility’s closure two years ago, our economic development team has worked tirelessly alongside Verso to find the right match for the region’s workforce, and we are confident we have found that in the buyer.”
Executives of Global Win Wickliffe signed a purchase agreement Thursday with representatives of Verso to buy the facility for approximately $16 million. The sale is expected to close around the beginning of the third quarter of this year.
The new owners plan to refurbish the mill with new equipment and updated technology. Global Win Wickliffe executives anticipate reopening the mill by the end of 2018, with the facility producing pulp and brown paper packaging. The paper mill will be the buyer’s first U.S. facility.
“Global Win is excited to join the people of Kentucky and Ballard County in restarting the Wickliffe mill,” said Tom Lawson, director of strategy for Global Win. “This is as much of an investment in people as in new equipment and technology.”
Verso Chief Executive Officer B. Christopher DiSantis said the sale will benefit all parties, including the community, the West Kentucky region and state.
“Verso is very pleased to enter into this purchase agreement to sell our Wickliffe subsidiary and the associated assets, which will generate cash and eliminate our annual carrying costs of the mill,” DiSantis said. “The transaction is also a victory for the local community and state of Kentucky, which will benefit from future investment in the site.”
Verso, based in Miamisburg, Ohio, idled the facility in November 2015, furloughing 310 employees, as demand diminished for the mill’s coated paper products. The company closed the mill in July 2016 and worked alongside state and local economic developers to identify and vet potential buyers.
When the deal closes, the Wickliffe mill will become Kentucky’s eighth Chinese-owned facility. Currently, Chinese-owned operations employ approximately 8,200 people statewide, including about 6,000 at the GE Appliance Park in Louisville and 1,600 at Lexmark International in Lexington.
China ranks among Kentucky’s top export destinations, placing fourth through June 2018. Exports to China increased by 60 percent in 2017 thanks in large part to rising demand for Kentucky-made vehicles, the Lincoln Navigator and MKC in particular.
Paducah Sen. Danny Carroll said the arrival of Global Win could be a difference-maker for the west Kentucky workforce.
“It says everything about our workforce and the available resources in our area that the company has chosen Wickliffe for its first U.S. operation,” he said. “It required a lot of people working together to make this project possible, and this promises to be a major boon for west Kentucky.”
Rep. Steven Rudy, of Paducah, said the community is ready for the new opportunity.
“Global Win will be a great fit for west Kentucky, and I look forward to the company thriving in an area with a dedicated workforce that has awaited this type of opportunity for the past two years,” Rudy said. “The paper mill is an important factor in the Ballard County economy, and its reopening is fantastic news.”
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority in a special meeting on Thursday preliminarily approved the company for tax incentives up to $25 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.