Chillicothe’s historic Pixelle paper mill, a longstanding presence in Ohio since the 1800s, is set to close in August. Amidst mounting concerns, local Republicans gathered on Good Friday to rally for the mill’s salvation, denouncing the Miami-based private equity firm, H.I.G. Capital, responsible for its impending closure. Ohio Senator Jon Husted criticized the firm for disregarding the impact on over 800 employees, emphasizing the devastation caused by their decisions. Attorney General Dave Yost captured the moment with a photo, labeling it “Exhibit A” for potential legal action, while Senator Bernie Moreno lambasted H.I.G. as “Wall Street elites” driven by corporate greed.
Moreno, a proponent of economic populism and endorsed by President Trump, highlighted the mill’s resilience through historical challenges and insisted it should endure the actions of a private equity company. The closure of the mill announced in April due to declining demand for its products prompted the community’s outcry and political realignment, with Republicans aligning more closely with working-class concerns. Pixelle expressed willingness to explore future options for the site, including potential redevelopment, in collaboration with local, state, and federal authorities.
Efforts to save the mill encountered a setback when H.I.G. and Pixelle reneged on an agreement to extend the shutdown timeline, creating uncertainty for the future of the factory and its employees. Chillicothe, Ohio, known for its rich history as the state’s first capital, now faces the challenges of navigating economic transitions and preserving its industrial heritage.
The announcement provided a glimmer of hope, offering a chance to find a new tenant or use for the property. It was the only positive news Moreno shared during his April rally. “Bernie has been at the forefront of this,” remarked Jai Chabria, a seasoned Republican strategist in Ohio. “Whether he succeeds or not doesn’t define our position. Comparing to the Republican Party of two decades ago, it’s unexpected for a wealthy Republican senator to take the lead. Bernie has truly embraced the party’s evolution.” Despite this, Katie Seewer, a spokesperson for the Ohio Democratic Party, criticized Republicans for the recent string of negative economic developments in the state. She highlighted Moreno’s assurance that the mill’s closure wouldn’t occur this year, holding Republicans responsible for the economic downturn in Ohio.
Pixelle is set to cease all operations in Chillicothe by August 10. The employees, many of whom are second- or third-generation workers at the paper mill, are anxiously awaiting to see if the tough rhetoric from Moreno and his associates translates into action. “Bernie denounces private equity,” noted Scott Wiesman, a mill employee of 30 years. “But he’s invested in it. So, Bernie, how bad is it really?” Mayor Luke Feeney, a Democrat, remains optimistic about Moreno’s efforts. “I believe his intentions have been honest and sincere,” Feeney stated. “The promises made by those who pledged to fight for us give me hope, and until proven otherwise, I’ll support them.” However, Feeney added, “If it turns out to be all talk and no action, I’ll be greatly disappointed, as we’ll be left to deal with the consequences.”
Chillicothe Mayor Luke Feeney, originally from Seattle, relocated to Chillicothe following law school in Cleveland and became mayor in 2015. Chillicothe, Ohio’s first state capital, with a population of around 22,000, boasts a thriving tourist industry, anchored by the nearby Hopewell earthworks and mounds, along with a revitalized downtown area that Feeney views as a small-town triumph. Just a stone’s throw from Pixelle, lively Paint Street is lined with two craft breweries, a boba house, and other trendy establishments housed in meticulously restored storefronts. A popular cafe, Paper City Coffee, pays homage to one of the town’s largest employers. The mill ranks as the third-largest job provider in the county, trailing the regional hospital system and a Kenworth Trucks facility.
The mill has long been a prominent feature of the local landscape, intertwined with Chillicothe’s history. Michael Throne, head of the Chillicothe Ross Chamber of Commerce, recalled his awe upon seeing the towering smokestack when first arriving in town for a job interview. “I’d seen smokestacks before,” Throne reflected, “but none that dominated the city’s skyline like
The old mill, once a cornerstone of the community, had seen many changes over the years as global forces reshaped industries and ownership. In 2022, H.I.G. acquired what was now known as Pixelle, a name that replaced the familiar Mead brand from years past. Long-time employees like Tim Jenkins reminisced about the days when being a “Mead kid” meant more than just a job – it was a sense of belonging and pride that lingered in memories like the free lunches during the strike of ’75.
Jeff Allen, the president of the United Steelworkers Local 731, noted the mill’s historical significance in supporting southeast Ohio. However, as the economy evolved and the workforce dwindled, the mill’s contribution to the city’s income tax revenues decreased from 13% to 8%. Mayor Feeney, recognizing the changing landscape, had foreseen the challenges of relying on a single industry in a shifting world.
The announcement of the mill’s closure by Pixelle came as a shock to the community, despite signs of decline. Jeff Allen, with nearly four decades of experience at the mill, admitted that while changes within the business were evident, closure seemed unthinkable. The news prompted a response from the mayor, Bernie Moreno, whose evolving political perspective contrasted sharply with the traditional Republican stance.
Moreno, moved by the impact of job losses on the community, took a stand against the mill’s owners. Reflecting on the lessons from Mitt Romney’s loss in Ohio, Moreno recognized the need for a more balanced approach that prioritized people over profit. His proactive involvement in the issue, spurred by a call from a concerned resident, demonstrated a shift in political attitudes towards addressing economic challenges on a local level.
After reading Moreno’s forceful letter that demanded answers from the owners, it seemed that there was nothing to disagree with in it. However, the temporary relief that came from Moreno’s strong stance was short-lived. Less than two months following the Good Friday rally, Pixelle announced that the mill would be closing within 60 days, rather than at the end of the year as promised by the owners.
Despite Moreno’s efforts, he acknowledged his lack of leverage in the situation, stating that there was no tool in his toolbox that could make the owners listen to him. H.I.G. proposed an alternative solution that could involve transferring the land to a community organization free from environmental concerns, potentially making it easier to repurpose the site.
While some find this proposed arrangement ideal, others, like Mayor Feeney, express concerns about the site possibly being transformed into a low-staffed data center. State and local officials are actively involved in discussions to sell or redevelop the site and to help displaced workers find new employment opportunities.
There is optimism for the region, with anticipated growth in skilled manufacturing jobs, including plans for new semiconductor, drone, and electric vehicle battery plants nearby. Despite hopes that the site could still operate as a paper mill, with the possibility of producing corrugated cardboard and other packaging materials, representatives from major paper companies have deemed the mill unsuitable due to a lack of necessary investments.
Moreno views this experience as a learning opportunity and has instructed his team to conduct a thorough audit of Ohio companies that may face similar challenges in the future. The goal is to intervene proactively before situations escalate, aiming to prevent crises like the one in Chillicothe from recurring.
