Pixelle Mill Closure Sparks State Intervention to Aid Displaced Chillicothe Workers

In Chillicothe, Ohio, a century-old paper mill is set to close, leaving 826 workers without jobs. Pixelle Specialty Solutions announced the shutdown, prompting swift action from state officials to cushion the blow. The closure, expected in the coming months, has stirred anxiety in a town where the mill has long been a cornerstone of economic life.

Governor Mike DeWine expressed disappointment, noting the mill's deep roots in the community. His administration has mobilized resources to support affected workers, from job placement services to unemployment benefits. The move reflects a broader effort to address the immediate fallout while eyeing long-term recovery.

The closure is not an isolated event. Across the U.S., manufacturing plants, especially in the paper industry, are shutting down as companies adapt to shifting markets. For Chillicothe, the challenge is clear: how to preserve a community's livelihood when a major employer vanishes.

Ohio's Department of Job and Family Services is stepping in with its Rapid Response team, a unit designed to assist workers after layoffs. The team is coordinating with Pixelle to organize sessions where employees can learn about reemployment services, unemployment benefits, and job search tools. These sessions aim to equip workers with practical steps to navigate the transition.

Matt Damschroder, the department's director, emphasized the urgency of the response. Workers can access resources through OhioMeansJobs centers or online platforms, which offer career counseling, skills assessments, and connections to local employers. While unemployment benefits are available only after job loss, reemployment services are open now, providing a lifeline for those planning their next move.

Research highlights the value of such programs. Intensive reemployment services can boost employment rates and earnings by up to 20%, though outcomes vary. In rural areas like Chillicothe, where job options are limited, the challenge is ensuring these services lead to stable, well-paying roles rather than temporary fixes.

The mill's closure threatens more than just jobs. In communities reliant on a single employer, shutdowns can spark a domino effect: reduced spending, strained local businesses, and declining tax revenue. Studies estimate that manufacturing plant closures can cost local economies tens of millions annually, with effects lingering for years.

To counter this, JobsOhio and Ohio Southeast Economic Development are working to redevelop the 400-acre mill site. Their goal is to attract new businesses, potentially in growing sectors like advanced manufacturing or logistics. They are also supporting Pixelle’s supply chain partners to find new markets within Ohio, aiming to preserve related jobs.

Similar efforts have shown mixed results elsewhere. In New York, after Sumitomo Rubber’s plant closed, state agencies facilitated job fairs and retraining, but many workers still faced long commutes or relocation. Chillicothe’s rural setting may complicate redevelopment, yet officials remain optimistic about the site’s potential.

The Chillicothe closure reflects broader trends in the paper industry. Demand for traditional products like printing paper has plummeted as digital media takes over, while packaging and corrugated boxes see growth. Companies like Pixelle are consolidating, closing older mills to focus on more profitable lines.

External pressures add to the strain. Rising costs for materials and logistics, aging infrastructure, and global supply chain disruptions have made many mills unviable. Recent hurricanes in the Southeast have damaged timber supplies, further squeezing the industry. These factors echo closures elsewhere, like International Paper’s shutdowns after its DS Smith acquisition.

For workers, the shift is jarring. Retraining programs can help, but they require time and resources not always available in small towns. Wage insurance, like the federal Reemployment Trade Adjustment Assistance program, has helped older workers by boosting post-displacement earnings, yet such programs are underused and not universally accessible.

Ohio’s response to the Chillicothe closure blends immediate aid with long-term planning. By prioritizing worker support and site redevelopment, the state aims to soften the economic hit and lay the groundwork for recovery. Yet the path forward is uncertain, as rural communities often struggle to attract new industries quickly.

For Chillicothe’s residents, the mill’s closure is a test of resilience. The state’s efforts, combined with community determination, could pave the way for new opportunities. As the paper industry evolves, towns like Chillicothe must navigate a delicate balance between honoring their past and embracing an unpredictable future.