The former Pactiv Evergreen paper mill in Canton has been shut for more than a year and a half. With several lawsuits underway, the site’s future remains in limbo — and so does the status of Canton’s wastewater treatment.
For years, Pactiv Evergreen was a fixture in Canton. In addition to operating the paper mill that was an economic engine for the town, Pactiv also operates the town’s wastewater treatment plant, which serves Canton’s residents and businesses.
But that could change in April, when the current agreement expires.
Pactiv is engaged in a legal battle with the prospective new owner, Spirtas Worldwide, over the sale of the site. The outcome of the case will affect not only the mill site but also the wastewater plant.
Canton Mayor Zeb Smathers said Pactiv has a responsibility to continue treating the waste — and that if it doesn’t, “I suspect many, many departments in both Raleigh and Washington and others would have something to say.”
“We know that Evergreen has told us privately and publicly that they will be treating our waste until March of 2025,” Smathers told BPR in a recent interview. “And also what we know is you simply cannot turn off the wastewater treatment plant. Doing so would cause an absolute health disaster and crisis to the citizens of Canton and Haywood County.”
The town of Canton is open to negotiating the cost past March 31st, Smathers said. But he added that the town is “not going to be held hostage” by Pactiv and that there are numbers Canton “cannot pay and will not pay.”
“We understand that our waste is going to be treated in the near future — probably extended future — at that wastewater treatment plant. We will pay a reasonable rate for our waste,” he said.
Representatives for Pactiv Evergreen and Spirtas did not respond to requests for comment. Pactiv was purchased earlier this month for $6.7 billion dollars by Novolex, a Charlotte-based company. Novolex also did not respond to requests for comment.
The wastewater treatment plant is just one of many uncertainties facing the former paper mill site as a tumultuous 2024 comes to an end.
The sale of the mill site was set to close on October 1, but Hurricane Helene delayed those plans. In response, Pactiv filed a lawsuit in Delaware accusing Spirtas of backing out of the deal.
Legal filings show Spirtas still wants to purchase the site and has filed a counterclaim. The company’s owner has said he has concerns about Pactiv’s insurance policy and alleged lack of access to the site.
Smathers said he’s “cautiously optimistic” that the sale will be resolved by the middle of next year.
“No one wants to see that site sit in purgatory,” he said. “It can and should be an economic engine, not just for Haywood County but the entire region when we need it the most.”
Pactiv Evergreen also faces legal action related to the $12 million in subsidies it received from the state of North Carolina to create jobs at the mill.
State Attorney General and Governor-elect Josh Stein sued Pactiv Evergreen in May, arguing that the company did not fulfill its obligation to employ 800 people through December 31, 2024. Pactiv shuttered the paper mill in May 2023.
In a partial motion to dismiss, Pactiv argued that it did not need to repay the full $12 million and that it only owes the state a “proportionate share” of that amount.
A judge ruled in October that the case can proceed, and a trial is set for next May.
A spokesperson for Stein confirmed the date of the trial and said the attorney general's office has also filed a request for earlier action known as a motion for summary judgment.
Smathers said Canton continues to be supportive of the state’s efforts to pursue repayment of the funds.
“We feel clear that Pactiv owes the state of North Carolina $12 million,” he said. “They disagree. But I’ve said continuously, in this state, when you make a promise, your job is to keep your promise. Pactiv made promises. They received state money, taxpayer money, money sent from Murphy to Manteo, and the state needs it back. Those promises were not fulfilled.”
Update: This story has been updated to include comment from Stein's office.
