ESCANABA, MI— Billerud says it will not move forward with converting the Escanaba paper mill to cardboard production.
The Swedish papermaker says the return on investment isn’t big enough to proceed.
The announcement Tuesday morning came after the state provided up to $200 million for mill improvements in 2023. Billerud was also expected to invest more than $1 billion to upgrade and expand the facility to produce paperboard.
In a press release, Billerud President and CEO Ivar Vatne said, “After in-depth feasibility studies, evaluations, and supplier discussions, we have concluded that the projected return on investment is not sufficiently attractive to proceed with the conversion of Escanaba to cartonboard production. During the process, conditions have changed and the cost of equipment and services necessary to transform the operations have greatly increased. Instead, we will pursue a higher returning and more moderate investment strategy for our North American mills going forward.”
The Escanaba mill was supposed to serve as the cornerstone of Billerud’s expansion into the North American market. The multi-year project was expected to retain at least 1,200 jobs and pump millions of dollars annually into the local economy.
The project would have been the largest investment ever made in an Upper Peninsula business.
