Pactiv Evergreen Canton NC Closure and Settlement

Pactiv Evergreen's Canton, NC facility was closed in 2020. The closure was a significant event for the local community.

The closure was due to a settlement agreement between Pactiv Evergreen and the U.S. Environmental Protection Agency (EPA). This agreement involved the company's alleged violations of the Clean Air Act.

The settlement required Pactiv Evergreen to pay a fine of $1.5 million. The company also agreed to implement new pollution control measures at its facilities.

The Canton facility had been a major employer in the area, with over 200 employees. The closure had a significant impact on the local economy.

Pactiv Evergreen reached a $6.5 million settlement with North Carolina officials.

The company agreed to pay $6.25 million in financial restitution, with $5.75 million going to Canton and Haywood County, and the remaining $500,000 to the state.

Canton and Haywood County will receive $5.75 million from the settlement, which will be used to create new opportunities, jobs, and lasting stability.

Pactiv also agreed to stop legal efforts to recoup property taxes from 2023 and 2024, and won't bill Canton for wastewater treatment services provided over the last 60 years.

The settlement marks the beginning of a new chapter for Canton, according to Canton mayor Zeb Smathers, who said it will allow the town to build a brighter future.

Attorney General Jeff Jackson said the settlement holds Pactiv accountable for violating its agreement with the state and the people of Canton.

Pactiv Evergreen made a significant announcement on March 6, 2023, regarding the closure of its Canton, North Carolina, mill.

The company plans to close its Canton, North Carolina, mill and its converting facility in Olmsted Falls, Ohio. Approximately 1,300 positions will be eliminated as a result of these actions.

Pactiv Evergreen will provide outplacement assistance and severance to impacted employees, consistent with its policy and labor union agreements.

The company expects to incur non-cash charges in the range of $310 million to $330 million primarily during 2023 related to the acceleration of depreciation of plant and equipment and other asset impairments.

Pactiv Evergreen will also incur and pay cash charges in the range of $130 million to $185 million primarily during 2023 and 2024 related to severance and associated benefits and exit and disposal and other transition costs.

The company's President and Chief Executive Officer, Michael King, stated that the strategic actions will reduce their capital expenditures and overhead costs.

Pactiv Evergreen has agreed to pay $6.25 million in financial restitution to settle the lawsuit with North Carolina officials.

The settlement will provide $5.75 million to Canton and Haywood County, while the remaining $500,000 will go to the state.

Canton and Haywood County will also avoid refunding about $4.5 million to Pactiv after the company dropped its legal efforts to recoup property taxes from 2023 and 2024.

Pactiv will not bill Canton for wastewater treatment services provided over the last 60 years as part of the settlement.