North America

Economic fallout as Perry paper mill shuts down

18 October, 2023

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Loss of 2,000 jobs and USD 10 million in taxes

 

 

{reg}The closure of the Foley Cellulose Mill in Perry is sending shockwaves through the region, causing a devastating economic ripple effect. With the shutdown scheduled for November, it's estimated that nearly 2,000 jobs and USD 9.9 million in state and local taxes will be lost, according to economists at the University of Florida.

The UF Institute of Food and Agricultural Science (IFAS) conducted a report and labeled the paper mill along the Fenholloway River as the primary economic force in a county where one out of five residents live below the poverty line.

The Foley mill, which provides jobs with a payroll of USD 77 million and starting salaries almost double the state per capita income, accounts for over 12 percent of county employment. This includes 525 jobs at the plant and another 500 jobs related to logging and transportation.

Beyond the job losses, the mill contributes USD 377 million to spending in Taylor County, a population of around 21,000. In essence, this is more than the combined profits of Florida's three National Football League teams.

The departure of Georgia-Pacific, the mill's parent company, will have statewide consequences, affecting over 1,879 more jobs and depressing spending by USD 571 million, says IFAS.

This devastating blow has led lawmakers to call on Georgia-Pacific for support, urging the company to assist displaced workers with extended health benefits, pay, and severance. Congressman Neil Dunn and Rep. Jason Shoaf are working to mitigate the impact on the community.

Taylor County, which heavily relied on the paper mill, is now looking for new solutions, from repurposing the mill to developing the forested land around Perry.

As the community searches for a new identity, a silver lining emerges with Super-Pufft Snacks USA Inc. investing USD 60 million in Perry to make Utz potato chips. While Perry grapples with a changing economic landscape, Super-Pufft is set to become the largest private employer, promising a significant economic boost.

In the face of immense challenges, the community remains resilient, determined to rebuild and adapt to these economic shifts.[/reg]

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