Governor Josh Stein and Attorney General Jeff Jackson announced they have reached a settlement with Pactiv Evergreen after the company’s sudden closure of one of their paper mills breached a contract with the state. Stein filed the lawsuit In 2023 while he was serving as attorney general and Jackson continued to pursue the case his predecessor started, one that he described as “a very straightforward matter of an agreement being broken.”
In 2015, Governor Pat McCrory granted $12 million in incentives to Pactiv Evergreen through a Job Maintenance and Capital Development Fund (JMAC) grant in exchange for the company maintaining at least 800 employees and running environmentally cleaner operations at their paper mill in the city of Canton until Dec. 31, 2024.
“When I signed this bill in September at the Western Residence, I noted that it was intended to ensure job retention and help manufacturing companies move toward cleaner energy operations,” said then-Governor McCrory. “This JMAC grant is doing exactly that at Canton Mills.”
However, in March of 2023, Pactiv announced it would be closing the mill. The closing of a mill that had been in operation for 115 years was a shock to workers and the people of Haywood County but it also violated the terms of the JMAC grant. Governor Roy Cooper warned Pactiv that closing the mill before the end date would violate the grant conditions, but the company went ahead with the closure shutting down the mill on May 23, 2024. Stein followed quickly with a lawsuit, seeking back the grant money the company was given.
Stein and Jackson announced that Pactiv will pay back half of the grant amount – $6.25 million to the county of Haywood and the city of Canton as part of the settlement.
“Pactiv broke its promise to the state and the people of Canton, and today’s settlement holds it accountable for violating its agreement,” said AG Jackson in a press release. “This settlement will allow the people of Canton and Haywood County to immediately put millions back into rebuilding their economy after the mill’s closure, and it will shield them from future litigation from Pactiv. After a devastating few years, this deal gives the people of Canton funds they desperately need right now.”
County and city officials are grateful for the funds and hope to use them to encourage job growth and economic development. Canton Mayor Zeb Smathers said this win marks a new beginning for the city.
“This settlement marks the beginning of a new chapter for Canton — a chapter that will build the hometown of tomorrow that reflects our grit, resilience, and commitment to our community,” said Smathers. “I am grateful to the state for their hard work and securing these resources which will allow us to create new opportunities, jobs, and lasting stability without Pactiv”.
