NC Attorney General Sues Pactiv Evergreen For Closure Of Paper Mill, Breach Of State Agreement

Source: Fox Carolina

Attorney General Josh Stein has sued Pactiv Evergreen for abruptly closing down their paper mill in Canton North Carolina. The mill was part of a 2015 economic development deal in which the state gave the company $12 million in incentives through a JMAC grant in exchange for a commitment to maintain operations, and at least 800 jobs, at its Canton North Carolina location through December 31, 2024. According to then Governor Pat McCroy, the deal was meant to ensure job retention and help manufacturers move into cleaner energy operations. Pactiv Evergreen broke the deal by closing the Canton location in May of 2023.

When the announcement of the mill’s closure came, Governor Roy Cooper notified the CEO of the impact the closure would have. “The mill’s closure would be a clear violation of a contract that two Pactiv Evergreen subsidiaries signed with the North Carolina Department of Commerce in February 2015,” he told the company.  Recently Cooper gave a statement supporting Stein’s lawsuit. With the closure of the mill resulting in over a thousand workers being displaced and the money North Carolina invested into the mill gone along with it, Cooper has called the closure of the mill a gut punch to the people of Canton and to North Carolina’s economy. 

In the lawsuit, Stein is seeking back the $12 million that was originally granted to the company in 2015. In a statement released on the matter Josh Stein said “Taxpayers in North Carolina invested in Pactiv Evergreen to bolster our state’s economy… 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.”

Share:

More Posts

Trump’s federal freeze threatens disaster relief, school funding, state patrol in NC

The freeze would result in North Carolina losing billions of dollars in funding for disaster relief, public schools, and state agencies. Though the order was temporarily blocked by a federal judge, Rep. Deborah Ross explained that it has left state and federal officials confused on how to proceed. She remains hopeful that it will not be allowed to pass but expressed the importance of understanding what is at risk.

Eastern North Carolinians Head to Court to Challenge Republican Gerrymandering

Two voters will make their case that Republicans illegally split Black communities in Eastern North Carolina among several electoral districts — effectively diluting their voting power. Courts have previously ruled that racial gerrymandering violates the Equal Protection Clause of the Constitution because it amounts to a discriminatory voting practice.

Thom Tillis Struggles to Find a Position on Trump’s Tariffs

North Carolina Senator Thom Tillis (R) is continuing to struggle when asked about tariffs, careful not to criticize Trump while signaling his anxiety over the policy. Tillis was previously censured by the state GOP for holding views contrary to MAGA and now appears wary of stepping out of line with the movement.