North Carolina Attorney General Jeff Jackson announced that Pactiv Evergreen has agreed to a settlement with state and local governments following the closure of its Canton paper mill in 2023. The settlement ends the
Department of Justice's lawsuit against the company to repay millions in grant funds to the state.
According to a Feb. 13 news release from the attorney general's office, Pactiv will pay $6.25 million in financial restitution and has agreed to drop its legal effort to secure a refund on its 2023 and 2024 property tax payments. Pactiv also agreed not to bill Canton for the operating costs of the town's wastewater treatment plant.
"Pactiv broke its promise to the state and the people of Canton, and today's settlement holds it accountable for violating its agreement," Jackson said in a written statement. "This settlement will allow the people of Canton and Haywood County to immediately put millions back into rebuilding their economy after the mill's closure, and it will shield them from future litigation from Pactiv. After a devastating few years, this deal gives the people of Canton funds they desperately need right now."
The attorney general's office broke down aspects of the agreement as follows:
- Repay $6.25 million to Canton, Haywood County, and the state. Canton and Haywood County will receive $5.75 million, and the state will receive $500,000.
- Waive its right to bill Canton for any cost of wastewater treatment services that Pactiv provided to Canton between 1964 and when it sold the plant last month, including substantial costs Pactiv paid to repair the wastewater plant after Hurricane Helene.
- Withdraw all legal challenges to its 2023 and 2024 property tax payments to Haywood County and Canton for the mill sites and other locations, which could have required the county and town to refund as much as approximately $4.5 million to Pactiv.
Pactiv announced the closure of the century-old plant in 2023, leading to the loss of hundreds of jobs. It was one of the largest employers in Haywood County, Canton Mayor Zeb Smathers previously told News 13.
In May 2024, then-Attorney General Josh Stein filed a lawsuit against Pactiv Evergreen on behalf of the state's Department of Commerce, claiming the company breached a 2014 grant agreement and owed $12 million to the state.
"This settlement marks the beginning of a new chapter for Canton—a chapter that will build the 'hometown of tomorrow' that reflects our grit, resilience, and commitment to our community," Smathers said in Thursday's news release. "I am grateful to the state for their hard work in securing these resources, which will allow us to create new opportunities, jobs, and lasting stability without Pactiv."
Pactiv sold the Canton mill site last month to Spirtas Worldwide and has ended all business in Canton.
See a copy of the settlement below:
STORY & PHOTO COURTESY OF ABC 13 WLOSPactiv Evergreen settles with state over 2023 Canton mill closure
