International Paper reinvests in Pensacola mill
- October 29, 2014
- / Carlton Proctor
- / economy
Wednesday was a red letter day for Escambia County's economy — and then some.
In the morning, Navy Federal Credit Union's CEO Cutler Dawson announced a $350 million expansion that will create 5,000 new jobs at the company's Heritage Oaks campus in Beulah.
In the afternoon International Paper announced plans to reinvest some $90 million over the next five years to improve energy efficiencies and enhance the plant's work environment.
In one day Escambia County got a nearly half-billion dollar shot in its economic arm.
"Northwest Florida’s business-friendly environment and initiatives continue to attract strong, innovative businesses," said Florida Senate President Don Gaetz. "Just last year, International Paper’s Pensacola Mill had a local economic impact of nearly $330 million.
The company’s commitment to Escambia County will be supported by $5 million in ad valorem tax abatements and infrastructure improvements. The incentive package includes $3 million from the Oil Spill Recovery Act and $2 million in funding from the Florida Department of Transportation.
Scott Luth, CEO of the Community Economic Development Association, said the incentives will include road improvements at the Cantonment plant's entrance off Muscogee Road and U.S. 29.
"This commitment from IP and Navy Federal shows what a wonderful, diverse business community we have here in Escambia County," Luth said. "Here in one day we've seen announcements from two extremes: a world-class financial services company and a world-class manufacturer.
"I think to have those commitments says a lot about this local economy and its workforce," he said.
The company said its annual average wage at its Cantonment plant is more than double Escambia County's average wage of $37,360.
Janice Holmes, communications director for the Pensacola mill, said that "due to competitive reasons (IP) is not announcing planned projects at this time but will in the future. Overall improvements will include training funding, local infrastructure improvements and investment incentives."
The mill employs 400 people and has been in the region since 1941. It was acquired by IP in 2000. The Pensacola site, part of the company's industrial packaging group, produces lightweight containerboard and specialty fluff pulp.
From Pensacola, the mill's containerboard products are sent to container facilities to create corrugated brown boxes. The fluff pulp is distributed to customers for diapers and other hygiene products.
In September, Escambia Commissioners approved a resolution in support of what was then dubbed "Project Phoenix" to seek grants from the Economic Development Transportation Fund Program to help an existing business in Escambia County "increase efficiencies, support and enhance its workforce and strengthen its competitive position."
Phoenix was the IP project's code name.
In the Chamber's news release, Escambia County Commissioner Steven Barry said the commissioners support helping the area's existing industry base grow.
"The Board's commitment of tax incentives and investments in county-wide infrastructure, such as the proposed project at Muscogee Road and U.S. 29, not only serves the logistic needs of one of our most established local companies, but also it benefits IP's more than 400 employees and the citizens of Escambia County," Barry said in the release.
IP executives said the investment commitment was the result of teamwork among Enterprise Florida, the Florida Department of Economic Opportunity, Florida Department of Transportation, CareerSource Florida, Escambia County, the University of West Florida’s Office of Economic Development and Engagement, CareerSource Escarosa, Gulf Power and the Greater Pensacola Chamber.
Scott Luth, CEO of the Community Economic Development Association, said the incentives will include road improvements at the Cantonment plant's entrance off Muscogee Road and U.S. 29.
"This commitment from IP and Navy Federal shows what a wonderful, diverse business community we have here in Escambia County," Luth said. "Here in one day we've seen announcements from two extremes: a world-class financial services company and a world-class manufacturer.
"I think to have those commitments says a lot about this local economy and its workforce," he said.
The company said its annual average wage at its Cantonment plant is more than double Escambia County's average wage of $37,360.
Janice Holmes, communications director for the Pensacola mill, said that "due to competitive reasons (IP) is not announcing planned projects at this time but will in the future. Overall improvements will include training funding, local infrastructure improvements and investment incentives."
The mill employs 400 people and has been in the region since 1941. It was acquired by IP in 2000. The Pensacola site, part of the company's industrial packaging group, produces lightweight containerboard and specialty fluff pulp.
From Pensacola, the mill's containerboard products are sent to container facilities to create corrugated brown boxes. The fluff pulp is distributed to customers for diapers and other hygiene products.
In September, Escambia Commissioners approved a resolution in support of what was then dubbed "Project Phoenix" to seek grants from the Economic Development Transportation Fund Program to help an existing business in Escambia County "increase efficiencies, support and enhance its workforce and strengthen its competitive position."
Phoenix was the IP project's code name.
In the Chamber's news release, Escambia County Commissioner Steven Barry said the commissioners support helping the area's existing industry base grow.
"The Board's commitment of tax incentives and investments in county-wide infrastructure, such as the proposed project at Muscogee Road and U.S. 29, not only serves the logistic needs of one of our most established local companies, but also it benefits IP's more than 400 employees and the citizens of Escambia County," Barry said in the release.
IP executives said the investment commitment was the result of teamwork among Enterprise Florida, the Florida Department of Economic Opportunity, Florida Department of Transportation, CareerSource Florida, Escambia County, the University of West Florida’s Office of Economic Development and Engagement, CareerSource Escarosa, Gulf Power and the Greater Pensacola Chamber.
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