ESCANABA, MI— State Senator Ed McBroom says he’s very disappointed about Billerud’s decision to cancel its plan to expand the Escanaba mill.
The Swedish company was expected to invest more than $1 billion to upgrade the facility to make paperboard. McBroom blames the decision on inflation and a huge increase in project costs. He says energy prices are also a factor.
“Energy costs in the U.P. are already higher than just about anywhere else, and so Michigan’s energy rates have not gotten better. Our reliability has gotten worse. And recent changes to the energy law certainly demonstrates that more of that is to come in the near future.”
McBroom believes the Upper Peninsula has tremendous potential when it comes to its own economy and being a contributor to the state and nation.
“So I still remain bullish and hopeful, but we’ve got to do some serious evaluation of the climate that Michigan is creating.”
Billerud officials say the projected return on investment isn’t sufficiently attractive to proceed with the conversion of the Escanaba mill to cartonboard production.
