Firm is in talks to reopen Franklin paper plant

By Josh Brown
The Virginian-Pilot
© April 20, 2011

A firm backed by former gubernatorial candidate Terry McAuliffe announced Tuesday that it is in talks with International Paper Co. to potentially use its shuttered Franklin mill to make wood pellets.

Franklin Pellets LLC has proposed using the site to produce 500,000 tons of wood pellets, which are burned for energy or heat. The firm said it has reached an agreement with International Paper, the Memphis, Tenn.-based paper company, to explore the proposal.

The agreement with McAuliffe's firm is the first to take shape since the paper mill closed last year and about 1,100 workers lost their jobs.

"There's no decision about this option or any future re-purposing option," said Donna Wadsworth, a spokeswoman for International Paper. "They have entered into a letter of intent. The process now is called due diligence."

McAuliffe, who ran for governor of Virginia but lost the Democratic nomination to state Sen. Creigh Deeds in 2009, announced his interest in the site more than a year ago. At the time, the businessman's plan was to use the site to make wood and biomass energy.

"I want to applaud the site owner's decision to explore options for the site in Franklin," McAuliffe said in a news release. "It is essential to create new jobs in the local community and at the port. This investment and these jobs are part of a clean energy future."

Franklin Pellets, which was incorporated this month in Delaware, is a partnership between Texas firm MultiFuels LP and CMI LP, a Virginia firm owned by McAuliffe and Peter O'Keefe, a political associate.

O'Keefe said in an interview that it is too soon to estimate how many jobs the project would create.

Josh Brown, (757) 446-2318, josh.brown@pilotonline.com

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How many jobs?

Submitted by BeachBoy2 on Wed, 04/20/2011 at 2:19 pm.

If it will bring lots of jobs I have no trouble with tax incentives. If it's just a big machine operated by a few dozen workers, we're better off waiting for something better.

Franklin Pellet Plant

Submitted by uva72 on Wed, 04/20/2011 at 7:44 am.

This deal has been a long time in the making. I spoke with McAuliffe at the 2010 Shad Planking. At that time, he lamented that this project was not competitive because VA did not offer tax incentives like adjoining states. I hope that approval of the plan does not involve taxpayer investment: I don't think I can afford it. I would rather see the potholes on I-264 fixed, which is a basic function of government not private / government business partnerships.