Celadon invests $267M in paperboard recycling facility in Virginia

Virginia Gov. Ralph Northam has announced that Kamine Development Corp. and Nicollett Industries LLC plan to invest $267 million to establish a joint venture paperboard recycling and production facility, Celadon Development Corp., at the Chesapeake Deepwater Terminal site in Chesapeake, Virginia.

According to a news release from Gov. Northam’s website, the project will convert mixed paper and old corrugated containers (OCC) to fiber sheet to supply middle-market paper manufacturers in China. Celadon will make its paper products by using a paper mill dryer system from the mixed paper and OCC at the new 335,000-square-foot facility.

“Celadon Development Corporation’s state-of-the-art operation will produce in-demand fibers from recycled paper products, benefiting the environment and positioning Chesapeake and the commonwealth as pioneers of this exciting recycling technology in the U.S.,” Gov. Northam says. “The capital investment, new jobs and environmental stewardship opportunities provided by this project will pay dividends for years to come, especially as we build out our clean economy. We look forward to a long and productive partnership with the company.”

Gov. Northam’s news release states that the facility will use up to 300 railcars per month and export 80,000 20-foot equivalent units per year through the Port of Virginia once the facility is fully operational. It also will create 210 new jobs for the area.

“Virginia has one of the largest and most automated container terminals in the country, and the port has been extremely supportive of our project,” says Tim Zosel, chief executive officer of Celadon Development Corp. “We worked closely with the city of Chesapeake to find a great piece of property that could be developed into a first-class location for our project. Celadon looks forward to a long and productive relationship with the many Virginians that made this possible.”

Last year, Celadon had announced two other investment plans in the Southeast. The company had intended to lease 37 acres of land from Port Tampa Bay in Tampa Bay, Florida, to construct a paper and cardboard recycling plant according to a report in March 2021. The company also announced in November 2021 that it would invest $155 million to open its North American headquarters and a state-of-the-art recycling and manufacturing facility in Savannah, Georgia, to produce recycled fiber pulp.

Recycling Today reached out to Zosel about the status of these projects, but he did not respond.

According to the news release from Gov. Northam, the Virginia Economic Development Partnership worked with the city of Chesapeake, the Hampton Roads Alliance, the Port of Virginia and the General Assembly’s Major Employment and Investment Project Approval Commission to secure this project. Gov. Northam also approved a $2 million grant from the Commonwealth’s Opportunity Fund to assist the city of Chesapeake with the project. The company also is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.