News

Actions

Joint venture to invest $267M in recycling, production in Chesapeake, creating more than 200 new jobs

cardboard-texture-SBI-300528997.jpg
Posted at 9:04 PM, Jan 11, 2022

RICHMOND, Va. - Gov. Ralph Northam announced Tuesday that Kamine Development Corporation and Nicollet Industries, LLC, green infrastructure and sustainable development leaders, will invest $267 million to establish a joint venture paperboard recycling and production facility, Celadon Development Corporation, at the Chesapeake Deepwater Terminal site in Chesapeake.

Virginia successfully competed with South Carolina for the project, which will create 210 new jobs.

“Celadon Development Corporation’s state-of-the-art operation will produce in-demand fibers from recycled paper products, benefitting the environment and positioning Chesapeake and the Commonwealth as pioneers of this exciting recycling technology in the U.S.,” said Gov. Northam. “The capital investment, new jobs, and environmental stewardship opportunities provided by this project will pay dividends for years to come, especially as we build out our clean economy. We look forward to a long and productive partnership with the company.”

Celadon will convert recycled mixed paper and old corrugated cardboard into a reusable and exportable fiber sheet to supply middle-market paper manufacturers in China. The company’s paper products will be produced using a paper mill dryer system from waste cardboard at a more efficient cost than bleached paper, utilizing a technology that has been widely used around the world but will be the first of its kind in the United States.

Celadon’s 335,000-sq. ft. facility will utilize the most efficient processes, creating a closed loop, waste-free industry. At its peak, this operation may use up to 300 rail cars per month and export 80,000 TEUs, or twenty-foot equivalent units, per year, equivalent to 10 cargo ships, through The Port of Virginia.

At full capacity, Celadon would represent one of the largest exporters in Virginia, with approximately $200 million in export value annually.

“It is exciting to partner with Celadon Development Corporation on this joint venture,” said Secretary of Commerce and Trade Brian Ball. “The revenue from Celadon’s exports and the creation of 210 new jobs, will strengthen the economy of the City of Chesapeake and the region, and we welcome this innovative company to Virginia.”

“Virginia has one of the largest and most automated container terminals in the country, and the Port has been extremely supportive of our project,” said Tim Zosel, Chief Executive Officer of Celadon Development Corporation. “We worked closely with the City of Chesapeake to find a great piece of property that could be developed into a first-class location for our project. Celadon looks forward to a long and productive relationship with the many Virginians that made this possible.”

The Virginia Economic Development Partnership worked with the City of Chesapeake, the Hampton Roads Alliance, The Port of Virginia and the General Assembly’s Major Employment and Investment Project Approval Commission to secure the project for the Commonwealth.

Gov. Northam approved a $2 million grant from the Commonwealth’s Opportunity Fund to assist the City of Chesapeake with the project.

The company is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

“We are excited to see this type of recycling business choose the City of Chesapeake as its new location,” said Rick West, Mayor of the City of Chesapeake. “This investment into green technologies underscores our city's commitment to sustainable development and further shows that Chesapeake is a great location for all types of businesses.”

Related: Plasser American dedicates first structure in Chesapeake headquarters expansion