$1 billion Arkansas paper mill to be built by Chinese Sun Paper

LITTLE ROCK (Scrap Monster): The Chinese Sun Paper Company has announced that it will build a $1 billion paper mill in southern Arkansas. The announcement to this effect was made by the company officials at the State Capitol in presence of Gov. Asa Hutchinson on Tuesday. This will be Sun’s first North American facility. A letter of intent towards plant feasibility study was signed by the Governer during his visit to China during November 2015.

According to the Governor, the investment is one of the largest private investments in the history of Arkansas. The construction of the mill is expected to commence during the first half of 2017 and is expected to take at least 2-2.5 years to get completed. The project is expected to create nearly 2,000 jobs during its construction phase. The mill is expected to generate around 250 direct jobs. It will create additional 1,000 indirect jobs in the timber industry.

Sun Paper Chairman and Founder Hongxin Li noted that the mill would be the most modern, efficient and environment-friendly facility in the entire North American paper and pulp industry. The mill will be used to convert wood into pulp, which will be used for paper production.

According to reports, the mill would be built about 65 miles southwest of Little Rock in the city of Arkadelphia. The MOU signed between the company and the state and local officials indicate that the average salary for jobs at the mill will be $52,000. The project will receive $10 million in local incentives for infrastructure at the site and another $92 million in local property tax abatement. Also, $12.5 million will be provided for site preparation and equipment. In addition up to $3 million will be allotted as workforce training funds. The state also plans to grant $50 million fully collateralized loan to the facility.

The new mill is expected to open new market for the south Arkansas timber industry and provide big boost to the region’s economy.

Based in Shandong Province, Sun Paper employs 10,000 people worldwide and is China's largest privately owned paper-making enterprise.