Economic Shifts and Local Impact in a Changing Industry
On April 15, 2025, Pixelle Specialty Solutions LLC announced the closure of its historic paper mill in Chillicothe, Ohio, a decision that marks the end of an era for the Scioto Valley and delivers a significant blow to the local economy. This closure, affecting approximately 800 workers, is part of Pixelle’s strategic effort to align its operational footprint with long-term business objectives, focusing on specialty paper markets. The move reflects broader trends in the paper industry, where declining demand for traditional paper products and economic pressures are forcing companies to rethink their operations, often at the expense of communities like Chillicothe.
The Chillicothe mill, a cornerstone of the region since its establishment in 1817, has faced challenges for years. In 2008, global demand for traditional paper began to decline, leading to ownership changes—first to Verso Corporation, then to Pixelle in 2019. Under Pixelle, the mill produced specialty papers for packaging, labels, and commercial printing, but consistent financial losses over the past few years prompted the private equity firm Lindsey Goldberg, which owns Pixelle, to shut down the facility. The closure process has already begun, with Pixelle committing to support its employees through the transition and work with union leaders to address impacts under collective bargaining agreements.
This closure adds to Ohio’s ongoing economic challenges in 2025. While exact numbers for business closures in Ohio since January 2025 are unavailable, the state has seen significant retail shutdowns in recent years, including 35 Family Dollar stores and nine Red Lobster locations in 2024. Nationally, Coresight Research projected up to 15,000 business closures in 2025, driven by inflation and a shift to online shopping, suggesting Ohio could see hundreds more closures this year. The Pixelle shutdown, however, stands out due to its scale and impact on a smaller community, with local sentiment on X noting that the loss of 800 jobs will “devastate the entire south central Ohio area.”
The ripple effects of the Chillicothe closure extend beyond job losses. The mill’s economic contributions supported local businesses, schools, and infrastructure, and its absence will likely strain the region’s social fabric. Pixelle plans to bolster its remaining facilities in Spring Grove, Pennsylvania, and Fremont, Ohio, to maintain its leadership in the specialty paper market, but this offers little solace to Chillicothe workers facing an uncertain future. Local leaders, including Chillicothe Mayor Luke Feeney, are working with state officials and workforce development partners to respond immediately and seek new opportunities for the displaced workers.
The Pixelle paper mill closure is a stark reminder of the fragility of local economies in the face of global market shifts. For Chillicothe, the path forward will require resilience and innovation—perhaps through community-led initiatives or state support to attract new industries. As Ohio navigates a challenging economic landscape in 2025, the story of Chillicothe serves as a call to prioritize sustainable development and protect the livelihoods of those who keep small towns alive.
References
Paper mill in Chillicothe announces closure, hundreds without jobs - sciotovalleyguardian.com
Pixelle Announces Closure of Chillicothe Paper Mill - Litter Media - littermedia.com
Pixelle Specialty Solutions to close Chillicothe paper mill, focus on specialty markets - abc6onyourside.com
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